EC clears acquisition of General Electric Industrial Solutions by ABBStaff Writer | June 2, 2018
The European Commission has approved, under the EU Merger Regulation, the acquisition of GEIS by ABB, both global suppliers of electrical products and systems.
Acquisition The transaction would raise no competition concerns
ABB Asea Brown Boveri and General Electric Industrial Solutions (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:
- Both ABB and GEIS are active in the design, manufacture and sale of low voltage and medium voltage products for industrial, commercial and residential applications, as well as of secured power protection systems and transformers.
However, their respective geographic areas of activity are complementary, with ABB being stronger in Europe and GEIS in the U.S.
- On overlapping markets in the European Economic Area (EEA), the Commission found that the transaction raises no significant concerns because:
i) the combination of ABB's and GEIS' portfolios does not significantly increase concentration in a number of product categories;
ii) the merged entity will continue facing effective competition from a number of large-scale rivals and specialised or local suppliers;
iii) products in these markets are generally homogeneous and therefore interchangeable between competing brands. Customers also broadly confirmed that sufficient alternative sources of supply will remain in the EEA after the transaction.
- 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. ■