EU reportedly set to block HeidelbergCement, Schwenk's Cemex Croatia deal

EU antitrust regulators are set to block HeidelbergCement and Schwenk's joint bid for Cemex's Croatian unit barring a last minute change of mind, Reuters reports.

The European Commission, which opened an investigation into the deal in October last year, has not been convinced so far by the companies' offer to lease a terminal on the Dalmatian coast to a rival to address its concerns, the news agency reported citing two source familiar with the matter.

The EU competition authority has said the deal may eliminate a significant player in a concentrated regional market, boost Cemex Croatia's market power in southern Croatia and lead to price hikes in grey cement.

German cement producers HeidelbergCement and Schwenk are looking to buy Cemex Croatia through their Hungarian joint venture Duna Drava Cement (DDC) in a deal worth about EUR250m. DDC is the largest importer in the area while Cemex Croatia is the biggest producer.