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German Federal Cartel Office approves the acquisition of Alstom's Industrial Boilers and Plants business by VonRoll Inova

CRA International was retained by VonRoll Inova, a leading provider of engineering and construction services for waste-to-energy plants, to assist it in its acquisition of Alstom's Industrial Boilers and Plants (IBP) business in Germany and Austria. The merger had to be notified to the German Federal Cartel Office (FCO) and was cleared without conditions despite high combined market shares of the merging parties (more than 60% according to the FCO's calculations). The Cartel Office based its approval of the merger to a large extent on arguments put forward by CRA, in particular the fact that the affected markets are bidding markets. In such markets, market shares can provide a very misleading picture with regard to the level of competition. If collusion concerns are not relevant, competition can be fierce even if the number of competitors is low and market shares are high. See the non-confidential version of the FCO's decision.

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