Brussels, 26th July 2007
The European Commission has cleared under the EU Merger Regulation the proposed acquisition of the Italian company Invex by the US company Superior Essex, both active in wires and cables. The Commission has concluded that the proposed transaction would not significantly impede effective competition in the European Economic Area (EEA) or any substantial part of it.
Superior Essex manufactures and sells cable and wires made of copper and other materials for telecommunications purposes, fibre optic cables for use in the telecommunications sector and winding wires for producers of electromagnetic devices.
Invex manufactures and supplies winding wires, used in a wide variety of electromagnetic devices such as motors, generators, transformers and control devices.
Both companies offer a similar broad range of winding wires, including round, flat winding wires and continuously transposed cables ("CTC"). The main impact of the proposed transaction would be on the supply of CTC, where the new entity would become the market leader and enjoy a significant market position.
The Commission’s examination of the proposed merger showed that the
market structure would remain competitive. In particular, a number of effective
competitors, which have sufficient spare capacity, would remain in the market
and would continue to be able to constrain the behaviour of the merged entity
and supply customers of CTC which are mainly large companies active in the
manufacture of high voltage transformers.