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CAR SPARE PARTS MERGER OKAYED.

The European Commission cleared, on 14 November, the proposed acquisition of the French trading company CFAO by Toyota Tsusho Corporation of Japan. The proposed acquisition leads to a vertical link in the market for Toyota spare parts. As a result, Toyota Tsusho Corporation, which is the main exporter of Toyota spare parts into French Guiana, will integrate NCCIE, a wholly-owned subsidiary of CFAO, which acts as a wholesaler of Toyota spare parts and as one of the two Toyota authorised repairers in French Guiana. The Commission concluded that the acquisition would have no material impact on the market, as it would only lead to the vertical integration of Toyota Tsusho Corporation's exclusive importer and wholesale distributor for Toyota spare parts in French Guiana. In addition, if the merged entity tried to raise its prices or cut back on supplies of Toyota spare parts to independent repairers, the latter would be able to source Toyota spare parts from other readily available channels in France or neighbouring countries, such as Suriname or the Caribbean.

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Publication:European Report
Geographic Code:3FREN
Date:Nov 15, 2012
Words:172
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