The Bundeskartellamt has cleared the acquisition of Friedrich Hofmann GmbH's operating subsidiaries by Veolia Umweltservice GmbH, contingent upon the sale of a disposal site in Nuremberg to an independent competitor. This condition is aimed at preserving competition in the Bavarian region, particularly in the collection of lightweight packaging and waste paper.

Andreas Mundt, President of the Bundeskartellamt, emphasized that without this condition, the merger would have been prohibited due to Veolia's dominant position in the region. The sale of the disposal site is expected to allow a new competitor to enter the market, thereby mitigating the potential negative impacts of the merger on competition.

The acquiring company must possess sufficient financial resources and technical expertise, and it should not have previously operated in the relevant geographic market. In addition to the disposal site, the new competitor will also acquire contracts for waste collection and the necessary resources to fulfill these contracts.

Veolia Umweltservice GmbH, a subsidiary of Veolia Environnement S.A., is a major player in Germany's waste management sector, operating around 250 sites and providing various waste management services. Friedrich Hofmann GmbH also plays a significant role in waste collection in parts of Bavaria, making the merger a notable event in the industry.

The Bundeskartellamt's investigation revealed a concerning trend of declining competition in the waste management sector, with fewer bids in tenders and a limited number of companies offering collection services. The merger parties, despite Veolia's recent withdrawal from certain collection services, remain significant competitors in the market.

The merger was initially notified to the European Commission due to the parties' turnover levels, but the examination was referred to the Bundeskartellamt upon request.