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AUTOMOTIVE COMPONENTS: COMMISSION APPROVES TRW'S ACQUISITION OF LUCASVARITY.

Summary:The European Commission announced on March 12 that it has approved a bid by TRW Inc of the United States to acquire sole control of UK automotive components maker LucasVarity plc. The Commission found that the companies' activities overlap in certain automotive electronics markets but that the structure and dynamics of them ensured the merger's clearance with the European Commission's competition authority.

TRW is a US based company, which supplies advanced technology products and services to the automotive and space, defence and information systems industries. LucasVarity plc, a company incorporated in the UK, designs, manufactures and supplies advanced technology systems, products and services to the automotive and aerospace industries. The companies aim to combine their complementary businesses to provide a broader product range and greater mass. The combined entity will thus compete more effectively against well-established global market leaders in the field of automotive systems and components.

The Commission's investigation indicated that minor competitive overlaps exist only as regards certain products in the automotive electronics sector (i.e. switches, entry systems, relays, fuse boxes, body controllers, information displays as well as the independent after-market sales) in the European Economic Area. In view of the structure and dynamics of the automotive electronics sector, the Commission concluded that motor manufacturers continue to act as a significant restraint on the company's future market behaviour and can source their requirements from alternative suppliers.

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Publication:European Report
Geographic Code:1USA
Date:Mar 13, 1999
Words:230
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