Merger control: Commission clears proposed acquisition of joint control over EFW by EADS and Singapore Technologies

The Commission cleared the proposed acquisition of joint control over Elbe Flugzeugwerke GmbH (“EFW”) by EADS Deutschland and Singapore Technologies Aerospace (“STA”). EFW is active in the commercial aircraft sector including providing maintenance services. STA is a service provider for Airbus and Boeing aircraft. EADS is active in manufacturing and selling commercial aircraft. EFW is currently solely owned by EADS.

The Commission held that in the market for “passenger-to freighter” (“P2F”) conversion the merging parties would have a relatively limited combined market position and that a significant number of alternative competitors will remain on the market. Moreover, third-party converters and independent companies active in aircraft manufacturing and maintenance, repair and overhaul (“MRO”) services can easily enter the P2F conversion market. As to the parties’ overlap in heavy maintenance MRO services, the Commission held that this overlap will remain very limited in a heavily fragmented market.

The Commission therefore concluded that the transaction would not significantly impede effective competition in the EEA or any substantial part thereof. Source: Commission Press Release 14/09/2012

Roschier, Attorneys Ltd. - Finland