Antitrust Law Daily Wrap Up, ACQUISITIONS & MERGERS NEWS: EC approves acquisitions of Tyco International, Visa Europe, (Jun 3, 2016)

By Linda O’Brien, J.D., LL.M.

The European Commission (EC) has approved under the European Union (EU) merger regulation the acquisition of Tyco International plc of Ireland by Johnson Controls, Inc. of the United States, and the acquisition of Visa Europe of the United Kingdom by Visa Inc. of the United States.

Tyco is a global provider of fire, security, and life safety products and services. Johnson Controls is a global multi-industrial company with three main business segments: (1) building efficiency; (2) automotive systems; and (3) power solutions. The Commission announced yesterday that the proposed acquisition would raise no competition concerns because the overlaps between the activities of Tyco and Johnson Controls are limited.

Visa Europe and Visa Inc. operate the VISA payment scheme, according to the Commission. An agreement entered into when the two companies de-merged in 2007 prohibited them from operating in the same territories. Visa Europe is active in the European Economic Area and neighboring countries, while Visa Inc. is active in the rest of the world. As a result, the companies’ activities do not overlap. Consequently, the Commission announced today that the proposed acquisition would raise no competition concerns.

UK WIG I Limited—3i Group—U.S. WIG Holdings LP deal. The EC also approved under the EU merger regulation the acquisition of joint control over UK WIG I Limited of the United Kingdom by 3i Group plc of the United Kingdom and U.S. WIG Holdings LP of the United States, ultimately controlled by Massachusetts Mutual Life Insurance Company of the United States. UK WIG owns and operates communication towers and other wireless infrastructure and is currently controlled by U.S. WIG Holdings (known as "Wood Creek"). 3i Group is an investment management business. Wood Creek is a holding company, and Massachusetts Mutual is a life insurance company. The Commission concluded that the proposed acquisition would raise no competition concerns because the companies’ activities do not overlap.

Coolblue—HAL Investments merger. The EC has cleared under the EU merger regulation the acquisition of Coolblue by HAL Investments, both of the Netherlands. Coolblue is an online retailer of a variety of consumer electronics, including computers and electrical household appliances. HAL Investments is an investment company active in a variety of sectors including media, financial services, building supplies, and the maritime sector. The Commission concluded that the proposed acquisition would raise no competition concerns since none of the companies controlled by HAL Investments is active in the same markets as Coolblue.

Companies: Tyco International plc; Johnson Controls, Inc.; Visa Europe; Visa Inc.; UK WIG I Limited; 3i Group plc; U.S. WIG Holdings LP; Massachusetts Mutual Life Insurance Company; Coolblue; HAL Investments

News: AcquisitionsMergers Antitrust