The Georgian Competition and Consumer Agency (GCCA) has approved the acquisition of equal 50 per cent stakes in LLC Max Import by Levan Varsimashvili and Gia Varsimashvili. Despite the market's already high level of concentration, the GCCA determined that this transaction does not significantly alter the competitive landscape.
The grey cement market in Georgia, comprising 52 companies in 2023 with a total market volume of 2.64Mt, remains highly concentrated. The Herfindahl-Hirschman Index (HHI) of 2876.44 units, an indicator of market concentration, will increase by just 55.76 points following the acquisition, bringing the HHI to 2932.2 units. The GCCA concluded that this minor increase does not pose a threat to competition, and the concentration is compatible with current market dynamics.
However, the acquisition was implemented without prior notification to the GCCA, a requirement under Georgian legislation when the aggregate income of participants exceeds GEL 20m and at least two parties report joint income exceeding GEL 5m in the previous financial year. As a result, the parties were fined and instructed to submit a formal application for the transaction.
The GCCA approved 14 concentrations in 2024, with six cases currently under review. The Agency continues to monitor compliance to ensure that future concentrations adhere to regulatory requirements, safeguarding competition in Georgia’s key industrial sectors.
