The Georgian Competition and Consumer Protection Agency (GCCA) has approved the concentration in the market for the extraction, purchase, and sale of manganese ore by the acquisition of a 100% stake in LLC “Mncorp” by Guram Talakvadze.
The agency studied the manganese ore mining market, and the export sales of ferro-silico-manganese by LLC “Mn Group – 2021”, since the volume of sales in the domestic market constituted a small part of its total sales.
As a result of the market analysis, it was determined that in 2023, more than 30 economic agents engaged in financial activities related to the ferro-silico-manganese export market nationwide. The total market volume amounted to 149,755,401.50 kg. The Herfindahl-Hirschman Index (HHI) of the corresponding market concentration was equal to 2849.7 units, which is an indicator of a highly concentrated market.
In the manganese ore mining market, in 2023, 5 economic agents carried out economic activities across the country. The total market volume amounted to 967,242 tons. The Herfindahl-Hirschman Index (HHI) of the corresponding market concentration was equal to 9871.5 units, which is an indicator of a highly concentrated market.
According to the Agency’s position, both studied markets, especially the manganese ore mining market, were highly concentrated by 2023, although the market shares of LLC “Mncorp” and LLC “Mn Group – 2021” in the relevant markets turned out to be small.
The high concentration index in the assessed markets was not related to the market position of the entities being assessed within the scope of the concentration and was due to the market share of another economic agent operating in the market and the market structure itself.
Accordingly, taking into account the market analysis carried out by the Agency, the assessed market structure, and the market shares of the parties involved in the concentration, it was determined that the implemented concentration would not have a significant impact on the competitive environment.
