Antitrust Law Daily Wrap Up, ACQUISITIONS & MERGERS NEWS: EC clears acquisition of Delphi’s mechatronics business by Norinco, (Dec 5, 2016)

By Linda O’Brien, J.D., LL.M.

The acquisition of the mechatronic business of Delphi Automotive of the United States by China North Industries Group Corporation has been approved today by the European Commission (EC) under the European Union (EU) merger regulation.

Delphi's mechatronic business manufactures mechatronics (technology combining mechanics and electronics) modules and switches for the automotive industry with assets located in Spain, Poland, Mexico, China, and Brazil. Norinco is a Chinese conglomerate specializing in defense products, with business lines in other sectors such as petroleum, gas, engineering, automotive, and photoelectric. Norinco focuses on markets outside of Europe. The EC concluded that the proposed transaction would raise no competition concerns because the companies are not active on the same or on related markets.

KTB-Trading acquisition. The EC also has approved the proposed acquisition of joint control over PT Krama Yudha Tiga Berlian Motors (KTB-Trading) of Indonesia by Mitsubishi Corporation and Mitsubishi Motors Corporation of Japan. KTB-Trading distributes Mitsubishi Motors brand vehicles in Indonesia. Mitsubishi develops and operates businesses across several sectors including industrial finance, energy, metals, machinery, chemicals, and food. Mitsubishi Motors is a manufacturer and supplier of passenger cars and light commercial vehicles. The Commission concluded that the proposed acquisition would raise no competition concerns given that KTB-Trading has no activities in the European Economic Area.

Companies: Delphi Automotive PLC; China North Industries Group Corp.; PT Krama Yudha Tiga Berlian Motors; Mitsubishi Corp.; Mitsubishi Motors Corp.

News: AcquisitionsMergers Antitrust