The Bundeskartellamt has granted conditional approval for Strabag AG's acquisition of all shares in the Stumpp Group, a road construction company based in southern Baden-Württemberg. The approval is contingent upon Stumpp selling its asphalt mixing plant in Zimmern to an independent buyer before the merger is finalized.

Andreas Mundt, President of the Bundeskartellamt, emphasized that Strabag is one of the leading road construction companies in Germany, operating a dense network of asphalt mixing plants. The complete takeover of Stumpp, which operates two mixing plants, would give Strabag a dominant position in the region between Stuttgart and Lake Constance, potentially controlling nearly half of the marketed asphalt.

Asphalt is a crucial material for road construction, produced in mixing plants and needing to be used shortly after production due to its properties. Therefore, the affected markets are defined regionally.

Stumpp is a leading provider in the region, operating two asphalt mixing plants and holding stakes in quarries. Strabag, one of Europe's largest construction companies, also has several asphalt mixing plants and quarry interests in the area but is not currently a leading player in road construction.

The merger would elevate Strabag to a dominant position in the regional asphalt market, exceeding the presumed dominance threshold of 40%. The proximity of the mixing plants from both companies along key transport routes enhances their market complementarity. Remaining competitors are mostly small to medium-sized firms with market shares below 15%.

To address competition concerns, the companies proposed selling the Zimmern asphalt mixing plant to a suitable independent buyer before the merger's completion. The Bundeskartellamt has thoroughly examined this offer through a market test, consulting other market participants in the region. The findings suggest that the sale could effectively prevent Strabag from achieving a dominant market position. Without the Zimmern plant, Strabag's market share would remain below the legal threshold of 40%. Full resolution of competition concerns is contingent on finding a suitable buyer who can ensure the plant's continued operation.

The Bundeskartellamt's decision is not yet final and can be appealed, with the Düsseldorf Higher Regional Court responsible for any such appeals.