Antitrust Law Daily Wrap Up, ACQUISITIONS & MERGERS NEWS: EC approves joint venture of Michelin and Fives group, (Dec 17, 2015)

By Linda O’Brien, J.D., LL.M.

The European Commission (EC) has cleared under the European Union (EU) merger regulation the creation of a joint venture by the Michelin group and the Fives group, both of France, the EC announced today.

Michelin manufactures and distributes tires through retail stores and online networks. Fives is an industrial engineering group that designs and supplies machines, process equipment, and production lines. The joint venture will develop and produce additive manufacturing machines (also known as 3D printers) as well as related services. The Commission concluded that the proposed transaction would raise no competition concerns as it would increase the number of competitors by creating a new player in additive manufacturing in the European Economic Area (EEA).

Hernandez Edelstahl joint control. The EC also has cleared under the EU merger regulation the acquisition of joint control of Hernandez Edelstahl GmbH of Germany by the Outokumpu Group of Finland and Hernandez Beteiligungs GmbH of Germany. Outokumpu is active in the production, sale, and distribution of a wide range of stainless steel products. Hernandez Beteiligungs GmbH is a holding and share management company. Hernandez Edelstahl GmbH distributes hot and cold rolled flat stainless steel products and stocks quarto plates.

The Commission concluded that the proposed acquisition would raise no competition concerns given the modest market shares and low increments resulting from the proposed transaction in markets where the parties' activities overlap and the presence of a number of players in the markets.

GETRAG merger. Additionally, the acquisition of GETRAG Getriebe-und Zahnradfabrik Hermann Hagenmeyer GmbH & Cie KG of Germany by Magna International Inc. of Canada has been approved by the EC under the EU merger regulation. GETRAG manufactures and supplies transmission systems to original equipment manufacturers (OEMs) of passenger cars, light commercial vehicles, and motorcycles. Magna is active globally in the manufacture and supply of a wide range of automotive components to OEMs of vehicles.

The Commission found that the companies' activities overlap in the market for the manufacture and OEM supply of complete drive train assemblies for full-electric and hybrid-electric light vehicles (eDrive systems) as well as for the manufacture and OEM supply of its various sub-systems. The Commission's investigation found that the overlaps were limited and that a number of strong players would remain in the market after the merger. Furthermore, OEM customers have the possibility to retain in-house manufacturing capabilities for at least one sub-system of eDrive systems, in order to maintain their bargaining power with suppliers. The Commission therefore concluded that the transaction would raise no competition concerns.

Companies: SCA Compagnie Générale des Établissements Michelin ; Fives Group ; Hernandez Edelstahl GmbH; Outokumpu Group; Hernandez Beteiligungs GmbH; GETRAG Getriebe- und Zahnradfabrik Hermann Hagenmeyer GmbH & Cie KG; Magna International Inc.

News: AcquisitionsMergers Antitrust