Antitrust Law Daily Wrap Up, ACQUISITIONS & MERGERS NEWS: EC approves acquisitions of retailers, a joint venture to manufacture marine engines, (Mar 26, 2015)
Organizations Mentioned:CSSC Wä | China Shipbuilding Power Engineering Institute | Corporation | Engine | Lion Adventure CoÖperatief U.A | PAI Partners SAS | Pepkor International | Steinhoff International Holdings | Wä | rtsilä | rtsilä
The European Commission (EC) has cleared under the European Union (EU) merger regulation the acquisition of outdoor sporting equipment retailer Lion Adventure Coöperatief U.A ("Lion Adventure") of the Netherlands by private equity firm PAI Partners SAS ("PAI") of France and the acquisition of Pepkor International by Steinhoff International Holdings, both South African retailers, the EC announced today. Both transactions were examined under the simplified merger review procedure.
In the Lion Adventure deal, the Commission concluded that the proposed acquisition would not raise competitive concerns because the activities of PAI’s controlled portfolio companies did not overlap with the activities of Lion Adventure.
The Pepkor-Steinhoff transaction involved two companies operating retail stores in Europe that sell household goods, home decoration products, and small electrical appliances. Nevertheless, the Commission found that the deal would not raise competitive concerns because there were only limited overlaps between the parties’ activities.
Joint venture. The EC approved the creation of a joint venture between Wärtsilä Corporation of Finland and China Shipbuilding Power Engineering Institute (CSPI), a subsidiary of the China State Shipbuilding Corporation (CSSC), ultimately controlled by the Chinese State. The joint venture—which would be based in Shanghai and would operate under the name CSSC Wärtsilä Engine—would produce 4-stroke, medium speed diesel engines based on Wärtsilä’s technology in China. CSSC is the parent company of one of the largest shipbuilding conglomerates in China that manufactures marine-related equipment. Wärtsilä provides power solutions for the marine and energy markets.
The Commission concluded that the joint venture would not raise competition concerns because the joint venture has no actual or foreseen activities within the European Economic Area (EEA).
Companies: Lion Adventure Coöperatief U.A; PAI Partners SAS; Pepkor International; Steinhoff International Holdings; Wärtsilä Corporation; China Shipbuilding Power Engineering Institute; CSSC Wärtsilä Engine
News: AcquisitionsMergers Antitrust