Mergers: Commission approves proposed acquisition of Cadence by Magna
European Commission - IP/09/720 07/05/2009
Brussels, 7th May 2009
The European Commission has cleared under the EU Merger Regulation the proposed acquisition of Cadence Innovation, a Czech manufacturer of car components, by one of its competitors, Magna of Canada. 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.
Magna is a diversified global automotive components supplier. Cadence Innovation s.r.o. is the European branch of Cadence Innovation LLC, USA, and operates manufacturing facilities located in both the Czech Republic and Hungary. It is mainly active in the production of bumpers, radiator grills, door panels, instrument panels and other moulded plastic components.
The parties' activities overlap only to a limited extent and the combined market shares of the merged entity would be rather low. Only on the market for plastic bumpers would the parties jointly have a market share of more than 15%.
In the Commission's market investigation, customers of Magna and Cadence confirmed that a set of alternative suppliers for bumpers was easily available to them and that the proposed transaction was unlikely to have negative effects on the markets concerned. The Commission therefore concluded that the proposed transaction would not raise competition concerns.
More information on the case will be available at: