Antitrust Law Daily Wrap Up, ACQUISITIONS & MERGERS NEWS: EC approves Bekaert and OTPP wire ropes joint venture, (Apr 26, 2016)

By Michael Menzhuber, J.D., LL.M.

The European Commission (EC) has approved under the European Union (EU) merger regulation the proposed creation of a joint venture to operate under the name of Bridon Bekaert Ropes by NV Bekaert SA of Belgium and Ontario Teachers’ Pension Plan Board (OTPP) of Canada, the EC has announced.

Baekert, active worldwide in steel wire transformation and coatings, will mainly contribute its wire rope activities to the joint venture. OTPP, a pension fund for teachers in the province of Ontario, has investments in a variety of companies worldwide, including Bridon International Ltd, a U.K. company active in the production and sale of wire ropes for various applications.

The EC concluded that the proposed joint venture would raise no competition concerns because several alternative suppliers for wire ropes and rope wire would remain active after the merger.

Kuoni. The EC also has approved under the EU merger regulation the proposed acquisition of Kuoni Travel Holding Ltd of Switzerland by EQT of the United Kingdom.

EQT is an investment fund active in northern Europe with portfolio companies active in a variety of industries. One of its funds controls the Scandic Hotel Groups hotel chain, which is primarily active in northern Europe. Kuoni, in addition to being a provider of visa application outsourcing services to governments, is a global intermediary of travel services, including hotel accommodation services, to the travel industry.

The EC concluded that the proposed acquisition would raise no competition concerns because the companies’ activities do not overlap and the vertical links, arising from Scandic’s provision of hotel accommodation services and Kuoni’s activities as an intermediary in the travel industry, are limited.

Companies: EQT; Kuoni Travel Holding Ltd; NV Bekaert SA

News: AcquisitionsMergers Antitrust