The German Federal Cartel Office prohibited the takeover because it was expected to create a dominant position for Xella in the market for aerated concrete and lightweight concrete blocks in the North German and West German regional markets.The company was not able to acquire a majority stake in H+H International.
The German Federal Cartel Office vetoed the acquisition attempt due to fears of Xella becoming a dominant player in the aerated concrete and lightweight concrete block markets of North and West Germany. Consequently, the company was unable to gain control over H+H International.