Mergers: Commission approves proposed acquisition of Continental by Schaeffler
- Germany
- 12/19/2008
The European Commission has cleared under the EU Merger Regulation the proposed acquisition of Continental AG, a German manufacturer of car components, by Schaeffler KG, also of Germany. After examining the operation, the Commission concluded that the transaction would not significantly impede effective competition in the European Economic Area (EEA) or any substantial part of it.
Schaeffler is a manufacturer of a great number of mainly mechanical products used in automotive, industrial and aerospace applications. Continental supplies electrical products and systems to the car industry. Continental also manufactures industrial rubber products.
The parties’ activities do not overlap but to a minor extent their activities are vertically related, as Schaeffler supplies needle roller bearings which are used in vehicle components produced by Continental.
However, the Commission’s investigation found that the merged entity would not have the ability to discriminate against its competitors in this market, as there are credible alternative suppliers and needle roller bearings represent only a small cost factor.
The Commission also carefully examined the potential conglomerate issues and found that there would be no negative impact on effective competition resulting from the combination of Schaeffler and Continental in the supply of components for belt drive systems and transmission systems.
