Germany’s Cartel Office and the UK CMA have both unconditionally cleared the acquisition of Veyance Technologies Inc by Continental AG, which overlap in the manufacture of certain automotive parts. Both agencies focused on the impact of the transaction in the supply of air springs and air-conditioning hoses. CRA provided a bidding analysis which demonstrated the parties were not closest competitors in the supply of air springs and this was accepted by both agencies despite Continental’s share and the reduction of the number of suppliers in the EEA from four to three. The agencies also concluded that the transaction did not raise horizontal concerns in automotive hoses as the parties focus on different technologies. The CMA’s Phase I inquiry further considered whether the transaction would create incentives for the merged entity to restrict assemblers’ access to raw hoses, but this was not deemed to be a credible concern. Further details of the secondary phase proceedings in Germany are available in the press release.
A CRA team advised the parties in both jurisdictions.
The role of uncertainty in the future European horizontal merger guidelines: Lessons learned from Illumina/GRAIL
Under these circumstances, it is however not entirely clear how the future competitive landscape will look like, merger effects cannot be modelled with a high...