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Brussels, 18 th December 2009

Mergers: Commission approves proposed acquisition of Mahag by Volkswagen

The European Commission has cleared under the EU Merger Regulation the proposed acquisition of the car dealer Mahag Group by Volkswagen AG (VW), both of Germany. 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.

VW manufactures and markets passenger cars and light commercial vehicles, related spare parts and accessories. It also owns some regionally focussed VW dealers in Germany, for instance, in Berlin. Mahag controls car dealerships in Munich, Ulm and Berlin selling predominately VW cars and the respective spare parts. The aim of the proposed merger is the vertical integration of Mahag which already has strong contractual relations with VW.

The Commission’s examination of the proposed transaction showed that the horizontal overlaps between the activities of VW and Mahag are limited and that, for all products concerned, the merged entity will continue to face effective competition.

The Commission also analysed the vertically concerned markets such as the development and manufacturing of passenger cars and of original VW parts and concluded that there would be no risk of any of the markets being closed off, as a sufficient number of alternative and competing sources of supply would remain active in the markets.

More information on the case will be available at:

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