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April 18, 2021

Competition Council greenlights establishment of Agilis 8×8 armored carrier manufacturer

The Competition Council has authorized the setting up by state-owned national company Romarm and Germany’s Rheinmetall Landsysteme of Romanian Military Vehicle Systems – the company tasked with developing, manufacturing and equipping the Romanian army with the Agilis 8×8 armored carrier, the competition watchdog said in a release on Wednesday.

Each partner is to hold 50 percent of the newly established joint-venture.

The Competition Council had previously approved the request of the two companies for a waiver from the provisions of the Competition Law, allowing the setting up of the new company before making the final decision, since there was a low risk that the competition would be affected.

Under the Competition Law, an economic concentration cannot come into being before it is declared compatible with a normal competitive environment by a decision adopted by the Competition Council. In exceptional cases, the competition watchdog may, upon request, issue a decision to waive this prohibition if the request is motivated.

Romarm is engaged in this operation through its Moreni-based unit, the Automechanical Plant the main activity of which is the manufacturing of military fighting vehicles, but which in recent years has exclusively performed maintenance and deliveries of spare parts to the Ministry of National Defence, as well as a series of civil industrial production services, specifically welded metal structures.

Rheinmetall Landsysteme GmbH is a German company specializing in the production of armored vehicles and related services, such as logistics, the supply of spare parts and maintenance. It is a member of Rheinmetall Group, an integrated technology group doing business in the automotive, electronic and defence industries.

The Competition Council looked at this operation and found that it does not raise significant obstacles to effective competition in the Romanian market or to a substantial part thereof, particularly by creating or strengthening a dominant position.

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