COMMISSION APPROVES METALLGESELLSCHAFT'S TAKEOVER OF GEA.
The European Commission has announced that it has approved the takeover of Bochum-based GEA AG by the big German metals group Metallgesellschaft (MG), which will acquire 74.85% of GEA's ordinary shares. Through a statement released on April 7, the Commission said that Frankfurt-based Metallgesellschaft would incorporate GEA into its engineering business (Lurgi AG), where turnover will increase from just under 5 billion Deutschemarks to almost 10 billion.The Commission's Merger Task Force found that since Lurgi builds integrated plants and GEA manufactures components, systems and production lines, their activities "do not overlap but represent a vertical integration of engineering and production". Furthermore, the Commission's investigations have shown that the takeover deal does not lead to what it calls compartmentalisation on the relevant markets or to any other vertical restrictions on competition. As Lurgi is not active in the same fields as GEA, there is no addition of market shares. However, the takeover does lead to some vertical integration between the two companies since GEA supplies components to Lurgi. GEA components are used by Lurgi in all the fields in which it is active, i.e. metal working, oil, gas and chemicals, environmental technology, energy technology and plastics production.
|Printer friendly Cite/link Email Feedback|
|Comment:||COMMISSION APPROVES METALLGESELLSCHAFT'S TAKEOVER OF GEA.|
|Date:||Apr 10, 1999|
|Previous Article:||COMMISSION CLEARS EATON CORPORATION'S ACQUISITION OF AEROQUIP-VICKERS.|
|Next Article:||PAPER: CEPI AND BIR ADOPT NEW RECYCLING STANDARDS.|