IP/07/1946
Brussels, 17 December 2007
Mergers: Commission approves proposed acquisition of Valeo CSB by Leoni The European Commission has cleared under the EU Merger Regulation the proposed acquisition of Valeo CSB, the automotive wiring harness business of Valeo of France by Leoni of Germany. After examining the operation, the Commission concluded that the transaction would not significantly impede effective competition in the European Economic Area (EEA) or any substantial part of it. Leoni manufactures automotive cables and automotive electrical distribution systems (EDS), which consist of cables and passive components such as fuse and relay boxes. It also manufactures electronic electrical distribution systems (EEDS), which consist of EDS and more sophisticated components providing a platform for data exchange and communication between end units. Valeo CSB only produces EDS.
The Commission's market investigation confirmed that the proposed transaction would not raise competitive concerns. The combined market share of the parties in the EDS/EEDS market after the merger would still be moderate. Furthermore Leoni's position on the upstream automotive cable markets would not lead to adverse competition effects on the EDS/EEDS market because competitors can switch to a number of important alternative suppliers or to in-house production. More information on the case will be available at:
http://ec.europa.eu/comm/competition/mergers/cases/index/m98.html#m_4932
