EU’s Competition mergers regulator has cleared General Electric’s planned €1.535 billion acquisition of Danish LM Wind Power.
General Electric produces onshore and offshore wind turbines, while LM Wind Power designs and manufactures blades that are sold to General Electric and its competitors as a component for the wind turbines.
EU’s anti-trust watchdog focused on the effect of the transaction both on the upstream market for the manufacture and supply of wind turbine blades, as well on the downstream markets for the manufacture and supply of onshore and offshore wind turbines.
According to the European Commission’s statement on Monday, the takeover was approved unconditionally because the combined company “would continue to face effective competition in Europe,” as General Electric has a relatively small market and even though LM Wind Power has a significant market share, has seen its market position fall.
Therefore, the Commission concluded that the proposed acquisition that was announced in October, would not result in a significant reduction in competition in the EU’s Single Market.