Brussels, 18 th June 2009
Mergers: Commission approves proposed acquisition of Sulzer by Renova
The European Commission has cleared under the EU Merger Regulation the proposed acquisition of Sulzer AG of Switzerland by Renova Industries Ltd. of the Bahamas. Both companies are involved inter alia in thin film coating of metal tools and components. 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.
The Renova group is active in the metallurgical, oil, machine engineering, mining, chemical, construction, housing, communications, utilities and financial sectors. Renova in particular controls the OC Oerlikon group which has overlapping activities with Sulzer.
Sulzer is active in the machinery, equipment, materials and service business relating to pumps, mixing and reaction technology, mass transfer technology, surface technology and thermal turbo machinery.
The Commission examined the competitive effects of the proposed merger notably in the markets for the provision of thin film coating services and equipment, where both parties are active. Thin film coating is a technology used by industrial customers for covering metal tools or components with a very thin protective layer. The Commission's analysis focused in particular on the German market which is the centre of gravity of Sulzer's activities in that area.
The Commission's investigation found that the proposed merger would not significantly change the competitive landscape in any of the affected markets as a sufficient number of competitors would continue to provide both, thin film coating services and equipment. The Commission therefore concluded that the proposed transaction would not give rise to competition concerns.
More information on the case will be available at: