IP/06/1132
Brussels, 28th August 2006
Mergers: Commission approves acquisition of Avent by Philips The European Commission has cleared under the EU Merger Regulation the proposed acquisition of the British company Avent by the Dutch company Philips. After examining the operation, the Commission concluded that the proposed transaction would not significantly impede effective competition in the European Economic Area (EEA) or any substantial part of it. Avent provides a wide range of baby-care products such as bottle warmers, sterilizers, breast feeding products, bottle feeding products, soothers, baby travel products, and baby and “mother-to-be” skincare products. Philips sells a broad range of electric products.
The proposed transaction would give rise to an overlap on the market for bottle warmers. While the combined market shares would remain limited at the European level, the two entities would have stronger market positions in the Netherlands, Spain and the United Kingdom. However, the Commission concluded from its investigation that the two companies would not be able to increase prices after the transaction as they would still face competition from numerous producers. Furthermore, the Commission found that many customers of the two companies expect the transaction to quicken the pace of innovation on the market, given that it would lead to the combination of Avent’s expertise in baby-care products and Philips’ technological know-how in electric appliances. The Commission has therefore concluded that the proposed transaction would not give rise to any significant reduction of competition. For additional information, please click on the following link:
http://ec.europa.eu/competition/mergers/cases/index/m85.html#m_4265
