Valeo: Brussels conditionally authorises takeover of FTE.
(CercleFinance.com) - Good news for Valeo, which on Friday obtained the European Commission's authorisation to acquire its counterpart FTE.
However, Brussels' decision is subject to the sale of Valeo's passive hydraulic actuators business to the Italian supplier of automotive parts Raicam, the Commission said in a statement.
The Commission initially considered that the deal originally considered by Valeo raised competition issues on the supply markets in the light of legislation in force. In order to comply, Valeo offered to divest all of its activities in the passive hydraulic actuators sector, with the exception of those in Korea, to the company Raicam.
In this context, Brussels considered that the proposed remedies were likely to dispel its fears, as they would ensure that the number of suppliers on the relevant market remains the same. The result will be that equipment manufacturers and independent buyers of spare parts will face a similar competitive environment after the deal, the Commission said.
Copyright (c) 2017 CercleFinance.com. All rights reserved.
However, Brussels' decision is subject to the sale of Valeo's passive hydraulic actuators business to the Italian supplier of automotive parts Raicam, the Commission said in a statement.
The Commission initially considered that the deal originally considered by Valeo raised competition issues on the supply markets in the light of legislation in force. In order to comply, Valeo offered to divest all of its activities in the passive hydraulic actuators sector, with the exception of those in Korea, to the company Raicam.
In this context, Brussels considered that the proposed remedies were likely to dispel its fears, as they would ensure that the number of suppliers on the relevant market remains the same. The result will be that equipment manufacturers and independent buyers of spare parts will face a similar competitive environment after the deal, the Commission said.
Copyright (c) 2017 CercleFinance.com. All rights reserved.