Brussels, 12th November 2007
The European Commission has cleared under the EU Merger Regulation the proposed acquisition of the Hong Kong based company Sunny World (HK) Ltd by the German-based company OSRAM. After examining the operation, the Commission concluded that the transaction would not significantly impede effective competition in the European Economic Area (EEA) or any substantial part of it.
OSRAM, which is part of the Siemens group, is active in the development, production and sale of a wide range of lighting products including compact fluorescent light bulbs with integrated ballast, which are more commonly known by consumers as 'energy-saving light bulbs', and traditional incandescent light bulbs.
Sunny World (HK) Ltd and its subsidiary, Ningbo Zuoming Electronics Co. Ltd are also active in the development and production of energy-saving and traditional light bulbs.
The Commission's examination showed that the proposed transaction would not have any significant effect as regards traditional light bulbs in view of the relatively minor overlap between the parties' activities in the EEA.
In the case of energy-saving light bulbs, although the overlap between the
parties' activities is more significant, the Commission concluded that the
proposed transaction would not cause competition concerns. The Commission
established that the merged entity would continue to face a number of effective
competitors supplying energy-saving light bulbs and that these competitors'
access to supplies would not be significantly affected by the merger. The
investigation also revealed that several manufacturers have plans to increase
their production capacity. There are also grounds to consider market entry can
be expected in the medium term from additional producers in China which are not
currently active in the EEA.