IP/08/195
Brussels, 8th February 2008
Mergers: Commission approves proposed acquisition of various Hagemeyer and Rexel assets by Sonepar The European Commission has cleared under the EU Merger Regulation the proposed acquisition of the Dutch company Hagemeyer' s subsidiaries in Austria and Sweden, plus six Hagemeyer outlets in Germany by Sonepar of France.. In a second decision, the Commission has also cleared the proposed acquisition of the French company Rexel's German and Luxembourg businesses by Sonepar. The Commission concluded that none of the transactions would significantly impede effective competition in the European Economic Area (EEA) or any substantial part of it. Sonepar, Hagemeyer and Rexel are mainly active in the wholesale distribution of electrical products and installation material as well as the wholesale of heating, ventilation and air-conditioning products and household and consumer electronics in some Member States.
Sonepar and Rexel entered into an agreement pursuant to which Rexel would launch a public takeover bid over Hagemeyer. This latter transaction is still subject to the Commission’s scrutiny under the Merger Regulation. Subject to a successful outcome of the takeover bid and the Commission's clearance, Rexel would transfer parts of Hagemeyer to Sonepar. Moreover, Sonepar and Rexel agreed that all of Rexel's activities in Germany and Luxembourg would be transferred to Sonepar, subject to the successful outcome of the takeover bid.
The Commission examined in a first case the effects of the proposed acquisition by Sonepar of Hagemeyer's assets in Austria and Sweden, six Hagemeyer outlets in Germany as well as part of Hagemeyer activities outside the EU (in the United States, Mexico, Canada, Australia, China, Singapore, Malaysia, Thailand and Switzerland). The Commission found that the horizontal overlap between the parties' activities would not give rise to competition concerns, since the parties' combined market share would be moderate in the Austrian market for the wholesale distribution of electrical products. In Sweden, where the proposed transaction would reinforce the pre-existing leading market position of Hagemeyer on the market for the wholesale of purely electrical products, the combined entity would continue to face effective competition from other wholesalers.
The Commission examined in a second case the effects of the proposed transaction whereby Rexel would transfer all of its activities in Germany and Luxembourg to Sonepar. The Commission found that, despite the significant position the merged entity would hold in some local areas, competitors that are already present in those areas or potential entrants from neighbouring areas would be able to exercise competitive constraints on the merged entity.
More information on these cases will be available at:
http://ec.europa.eu/comm/competition/mergers/cases/index/m98.html#m_4949 http://ec.europa.eu/comm/competition/mergers/cases/index/m100.html#m_5029
