Finland’s competition watchdog has approved, subject to conditions, Saferoad Holding AS’s proposed acquisition of Cleanosol Oy and Tiemerkintä A & E Oy after concluding the transaction would otherwise significantly reduce competition in the Finnish road marking market.
The Finnish Competition and Consumer Authority, or FCCA, said Thursday that its approval is conditional on Tiemerkintä A & E being excluded from the final transaction, the removal of overlapping board memberships between the two Finnish companies, and the divestiture of Saferoad’s existing Finnish road marking business to Tiemerkintä A & E.
Saferoad, a Norwegian infrastructure services company operating across the Nordic region, currently provides road marking services in Finland. Cleanosol and Tiemerkintä A & E are also active in the Finnish road marking sector, while Cleanosol additionally manufactures thermoplastic hot mass used in road markings.
The FCCA said its investigation found that the original transaction would have harmed competition in two key markets: road marking contracts issued by Finland’s regional ELY Centers and contracts awarded by municipalities and other customers involving longitudinal road markings, such as center and edge lines on roads.
According to the regulator, both markets are already highly concentrated, and the acquisition would have reduced the number of significant competitors to two.
“Cleanosol and Saferoad have competed in tenders awarded by the ELY Centers,” the FCCA said, while Tiemerkintä A & E and Cleanosol had competed against one another in municipal contracts.
The regulator’s review found that the merged company would have gained a dominant market position, with only one major rival — Hot Mix — remaining as a significant competitive constraint.
To address those concerns, Saferoad agreed to amend the transaction so that it acquires only Cleanosol, leaving Tiemerkintä A & E independent. The company also committed to restructuring Cleanosol’s board to eliminate ties to Tiemerkintä Group ownership or management.
In addition, Saferoad agreed to divest its current Finnish road marking operations to Tiemerkintä A & E, subject to FCCA approval of the buyer and related agreements.
The FCCA said the remedies would preserve the current market structure by allowing Tiemerkintä A & E to remain an independent competitor while expanding its role in public road marking tenders through the transferred business.
The regulator added that the acquisition cannot be completed until it approves the divestiture arrangements and the amended transaction terms.
The FCCA’s full decision has not yet been published because it contains confidential business information, the agency said.
