District heating customers could be worse off with merger

Both Logstor and Powerpipe Systems operate within the market for the manufacture and sales of pipe systems for district heating distribution. After considering the proposed acquisition carefully, the Swedish Competition Authority applied to Stockholm City Court to have the merger prohibited. If the merger is carried out Swedish district heating customers could be worse off. Stockholm City Court has today dismissed the Competition Authority’s application.

“The Court’s decision could have a negative impact on Swedish district heating customers”, says Kristina Geiger, the Competition Authority’s Deputy Director General.

Stockholm City Court does not share the Competition Authority’s assessment of how the market should be demarcated.

“We are of the view that if Logstor is allowed to acquire Powerpipe Systems it will achieve a dominant position in Sweden, and it is unfortunate that Stockholm City Court does not share our assessment”, says Per Karlsson, the Competition Authority’s Chief Legal Officer. “We are now reviewing the judgement to decide whether or not to appeal.”