Absorption of competitors, pressure on small businesses and lobbying at the highest level: it is with the help of such opaque instruments that cement monopolies , which subsequently begin to dictate their terms and prices. All this gives industrial giants the opportunity to receive super-profits - there are many similar cases in Europe and the USA, and against the backdrop of war, the domestic construction industry is also vulnerable to such actions. Thus, the Irish CRH is seeking to “cement” the largest share of the Ukrainian building materials market.
What exactly is this cement holding known for and by what methods it fights for leadership positions in the markets of different countries – StopCora journalist Alla Legeza investigation .
As reported on the CRH website, the Irish company has plans to acquire the Ukrainian assets of its competitor Dickerhoff (Buzzi). If the draft of this agreement receives the green light from the Antimonopoly Committee, then this holding will become the largest supplier of cement in Ukraine. This virtually monopoly position will allow the Irish to dominate the market and single-handedly determine prices for building materials.
All this is happening in the context of large-scale reconstruction and restoration of real estate destroyed by enemy shelling. This means that the potential new market leader will claim excess profits. It should be noted that CRH already has extensive experience in absorbing markets in different countries. In particular, in their homeland, Ireland, as well as in the United States.
“The state, through the police, through the antitrust authority, through the law enforcement office, through all these different organizations, protected CRH, and it continues to do so. This went on since the 60s, and then they took so much money out of the Irish economy that in 1978 they moved to America and began using money received from Irish consumers to buy capacity in the United States ,” Irish businessman Seamus May .
In addition, our editorial team was able to obtain a copy of the US Federal Trade Commission complaint, dated 2018, regarding CRH's purchase of its competitor in Kansas for $3.5 billion.
“ The acquisition will further increase the level of concentration, making the combined company the largest supplier of Portland cement, sand, gravel and crushed limestone to the market. As a result, competition and the desire to create a monopoly in the relevant markets may be significantly reduced ,” the document says.
A similar application was considered in the District of Columbia court in the United States in the same year. As it states, CRH intended to acquire a competitor in Virginia and West Virginia and “strengthen CRH’s de facto monopoly.”
“All these countries have felt the consequences of the aggressive takeover of the cement market with the participation of CRH and the unreasonable increase in prices for construction materials. Is this enough to understand what the consequences of approving the planned merger of CRH and Dickerhoff in Ukraine might be? And if the position of the Antimonopoly Committee is known later, then the position of the authorities is alarming, because the head of government Denis Shmigal officially supported CRH at a meeting with the Irish Prime Minister ,” notes Alla Legeza.
We would like to remind you that on December 19, round table was held on the topic “The first industry study of building materials for the restoration of Ukraine. Cement: opportunities and challenges for producers and consumers.” During the event, prospects for the development of the industry and threats, as well as the contribution of cement producers to the future recovery of Ukraine were discussed.
