IP/06/6
Brussels, 6th January 2006
Mergers: Commission approves acquisition of joint control of Ahlsell by Goldman Sachs and Cinven The European Commission has cleared under the EU Merger Regulation the proposed acquisition of Ahlsell Group (“Ahlsell”), a wholesale and retail distributor of plumbing/heating, water and sewage, electrical, refrigeration and tool products to installation companies, by Goldman Sachs Group, (Goldman Sachs) and Cinven Group (Cinven). The Commission concluded that the transaction would not significantly impede effective competition in the EEA or any substantial part of it.
Goldman Sachs is a global investment banking and securities firm. Goldman Sachs controls several undertakings, including Prysmian, a leading manufacturer of energy cables and telecom cables. Cinven is a private equity investments firm. Ahlsell is a wholesale and retail distributor of plumbing/heating, water and sewage, electrical, refrigeration and tool products to installation companies, industries, municipalities and retailers, with operations in Sweden, Norway, Finland, Denmark and, to a lesser extent, Russia.
The Commission’s examination of the deal showed that there are no horizontal overlaps between the activities of the parties. The Commission also assessed the vertical effects resulting from the deal given that Prysmian is one of the leading energy and cable suppliers in Europe, while Alshell is a large distributor of installation products, including cables, in the Scandinavian countries. However, the investigation showed that Prysmian has limited sales of cables in that region, while other manufacturers hold a stronger position. Moreover, the region has other larger distributors competing with Ahlsell.
