Considering to intervene against Norva’s acquisition of Vitek Miljø

The Norwegian Competition Authority is considering intervening in Norva24 Vest’s acquisition of Vitek Miljø, and the parties have been notified of this. The Authority’s preliminary assessment is that the acquisition will impair competition in the market for emptying and pressure washing services in former Hordaland County, resulting in higher prices or lower quality for customers in this market.

Norva24 Vest is part of a larger group with around 20 branches in Norway, mainly located in Eastern, Southern and Western Norway. Vitek Miljø is located in Bergen. Both parties offer emptying and pressure washing services, as well as pipe renewal and other pipe services.

Emptying and pressure washing services include, amongst other things, emptying septic tanks, sand traps, oil and grease separators and other wet or dry masses, as well as cleaning and/or high pressure washing of fuel tanks, manholes, tunnels and building facades.

– Norva24 Vest and Vitek Miljø are the two largest players in the market for emptying and pressure washing services in former Hordaland county, and the concentration in the market will increase significantly as a result of the acquisition, says project manager Ingvild Nordtveit.

The Competition Authority considers that other players in the market for emptying and pressure washing services in former Hordaland county are less close competitors to the parties, and that there are high barriers to entry in the market.

– We are concerned that the reduced competition as a result of the acquisition may lead to increased prices or lower quality for the customers in the market. Municipalities in former Hordaland county are amongst the parties’ customers, which means that increased prices in the market may subsequently lead to higher municipal fees for residents in these municipalities, says deputy director Hanne Lilja Falkanger.

The Competition Authority emphasizes that today’s notice is not a final decision. Under the Norwegian Competition Act, the companies now have 15 working days to comment on the authority’s assessment in the notice. The authority then has 15 working days to make a final decision in the case.

The deadline for the final decision is 24 September 2024.