The Lithuanian Competition Council has granted clearance for Saferoad Baltic's acquisition of Gatas, a decision made on the basis of commitments aimed at preserving effective competition in the supply and installation of road barrier systems.

Upon reviewing the merger notification submitted on October 17, 2024, the authority's experts gathered information from both companies and their competitors. They concluded that without Saferoad Baltic's commitments, the merger would likely create or strengthen a dominant market position, significantly restricting competition.

The potential negative impact was attributed to the merged entity's ability to limit competitors' access to road barrier systems, coupled with the high concentration of firms in the supply and installation markets. This could lead to increased prices for road barriers and related services.

In response to these concerns, Saferoad Baltic proposed commitments on April 16, ensuring that it would supply road barriers to Gatas's competitors on fair and non-discriminatory terms. Additionally, both companies agreed to refrain from exchanging confidential information.

To further safeguard competition, the commitments were enhanced to include a provision that would require Saferoad Baltic to apply similar terms to Gatas if market conditions changed significantly. The Competition Council determined that these commitments would effectively mitigate the identified negative effects on competition.

An independent trustee will oversee the implementation of these commitments, ensuring compliance and effectiveness. The decision can be appealed within one month, and a non-confidential version will be made available on the authority's website soon.