The European Commission said on June 4 that it had approved, under the EU Merger Regulation, the acquisition of General Electric Industrial Solutions (GEIS) by ABB Asea Brown Boveri Ltd (ABB), both global suppliers of electrical products and systems.
According to the Commission, the transaction would raise no competition concerns in the relevant markets within the European Economic Area. ABB and GEIS are active worldwide in the manufacture and sale of electrical components and systems.
The Commission carried out a broad investigation on a large number of markets and concluded that the respective geographic areas of the companies’ activities are complementary, with ABB being stronger in Europe and GEIS in the US.
According to the Commission’s conclusions, the merged entity will continue facing effective competition from a number of large-scale rivals and specialised or local suppliers
On markets where the merging companies are active at different levels of the supply chain, the Commission found that they would not have the ability to foreclose competitors, notably because alternative suppliers will continue to operate in the market.
The Commission, therefore, concluded that the proposed transaction would raise no competition concerns in any of the markets concerned.