Antitrust Law Daily Wrap Up, ACQUISITIONS & MERGERS: EC approves acquisition of South Staffordshire by Mitsubishi and KKR, (Feb 17, 2016)
Organizations Mentioned:CVC Capital Partners SICAV-FIS S.A. | CVC Capital Partners SICAV-FIS, SA | KKR & Co. L.P. | Mitsubishi Corp. | Mitsubishi Corporation of Japan | RAC Group (Holding) Limited | South Staffordshire Plc | Sphinx Investment Pte Ltd.
By Michael Menzhuber, J.D., LL.M.
The European Commission (EC) has approved under the European Union (EU) merger regulation the acquisition of joint control over South Staffordshire Plc of the United Kingdom (SSP) by Mitsubishi Corporation of Japan and KKR & Co. L.P. of the United States, the EC announced today.
SSP provides regulated water services (abstraction of water, treatment of abstracted water, distribution of water to users via a network of underground pipes, etc.) as well as non-regulated water services (water treatment, waste waters, water tinkering, etc.) and related services. Mitsubishi is a global integrated trading company and KKR is a global investment firm.
Because none of the Mitsubishi or KKR portfolio companies compete either on the same market as SSP or in related markets, the EC concluded that the proposed acquisition would raise no competition concerns.
RAC Group (Holding) Limited. The EC also has approved under the EU merger regulation the acquisition of joint control over RAC Group (Holding) Limited of the U.K. by CVC Capital Partners SICAV-FIS S.A. of Luxembourg and Sphinx Investment Pte Ltd of Singapore.
RAC offers breakdown and other motor-related services in the U.K. and Ireland. CVC and Sphinx are investment companies holding investments in companies active in various industries. The companies’ activities do no overlap.
A vertical relationship arises from CVC’s portfolio company Franklin’s activities in full fleet leasing and flexible vehicle contract hire services, which could be used by RAC for providing its motor breakdown services. However, given the companies’ moderate positions and the number of strong competitors active on these markets, the EC concluded that the proposed acquisition would raise no competition concerns.
Companies: South Staffordshire Plc; Mitsubishi Corporation of Japan; KKR & Co. L.P.; RAC Group (Holding) Limited; CVC Capital Partners SICAV-FIS S.A.; Sphinx Investment Pte Ltd.
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