The Georgian Competition and Consumer Agency (GCCA) has approved the acquisition of a 100% stake in road construction company LLC ‘Nomeri – Erti’ by individual entrepreneur Paata Shubitidze, declaring that the transaction poses no threat to market competition.
After the analysis of the sector, the Agency found that the market remains low in concentration. As of 2024, 608 entities were operating in Georgia’s road construction industry which had a total market volume exceeding GEL 3.96 billion (excluding VAT). The Herfindahl-Hirschman Index (HHI), a standard measure of market concentration, rose only slightly, from 197.63 to 198, after the acquisition, revealing a negligible impact.
Under Georgian law, concentrations must be reported to the GCCA if the combined turnover of the involved parties exceeds GEL 20 million, with at least two participants each earning more than GEL 5 million in the previous fiscal year. If the Agency is not notified, it can result in penalties.
The ‘Nomeri – Erti’ acquisition is one of 11 concentrations cleared by the Agency in 2025 to date.
