Brussels, 27th April 2007
The European Commission has cleared under the EU Merger Regulation the proposed acquisition of UGS, a US company active in product life-cycle management software solutions, by Siemens AG of Germany. The Commission concluded that the transaction would not significantly impede effective competition in the European Economic Area (EEA) or any substantial part of it.
Siemens is active in various business areas comprising inter alia information and communication technology, automation and control, power generation and transmission equipment, transportation, medical solutions, lighting and financial services. UGS is a provider of product life-cycle management software (“PLM”) solutions. With the proposed concentration, Siemens would complement its automation and control (“A&C”) business, which offers real-world automation products, with that of UGS’ products, which are in the area of virtual automation.
The Commission’s examination of the proposed transaction showed that the limited horizontal overlaps resulting from the merger would not give rise to competition concerns since a sufficient number of alternative competitors would remain active on the markets concerned.
The Commission also analysed the potential effects of the proposed transaction arising from the link between UGS’ PLM solutions and Siemens’ A&C products. The Commission concluded that the combination of the two automation segments would not create an incentive for the merging parties to develop proprietary interfaces which would discriminate against competitors in the respective markets since open and standard interfaces appear to be a common feature of this industry.
More information on the case will be available at: