IP/09/1224
Brussels, 5 th August 2009
Mergers: Commission clears proposed acquisition of Delphi Corporation by Platinum Equity
The European Commission has approved under the EU Merger Regulation the proposed acquisition of mobile electronics and transportation systems manufacturer Delphi Corporation by the global investment company Platinum Equity LLC. The Commission concluded that the transaction would not significantly impede effective competition within the European Economic Area (EEA) or a substantial part of it.
Platinum is an international firm specializing in the acquisition and operation of companies that provide services in a number of markets, including information technology. Delphi is a global supplier of mobile electronics and transportation systems engineered for use in the automotive industry.
Both Platinum and Delphi manufacture and sell automotive electric distribution systems ('EDS'), sometimes also referred to as "wiring harnesses".
Although Delphi is an established supplier of EDS, Platinum is a relatively small player in Europe. T he Commission's investigation clearly showed that Platinum and Delphi are not close competitors. Also, t he Commission established that a number of effective competitors supply the relevant products and that customers would still have a choice between several alternative suppliers such as Leoni, Yazaki, Draexelmaier and Lear.
The Commission therefore concluded that the proposed transaction would not give rise to competition concerns.
Completion of the proposed transaction is subject to the approval of the US Bankruptcy Court of the Southern District of New York. At the time of the Commission's decision, it is still open who the ultimate acquirer of Delphi will be.
More information on the case will be available at:
http://ec.europa.eu/competition/mergers/cases/index/m111.html#m_5570
