On 4 August, the Stockholm District Court ruled that the proposed merger between two producers of pre-insulated heating pipes, Danish Logstor and Swedish Powerpipe, would not impede effective competition and that the deal could go ahead (T 1805-16).
Back in February, the Swedish Competition Authority asked the Court to block the merger, claiming it constituted a violation of competition rules. In essence, the Court dismissed the principal claims presented by the Authority on grounds of geographic market definition.
Copenhagen Economics assisted the two opposing parties in analysing differences in pricing and transport costs between countries; key factors in geographic market definition. Karl Lundvall and Martin Sutinen appeared in Court as expert witnesses and presented the findings.
The Swedish Competition may appeal the decision.