European Commission - Press release
Mergers: Commission clears acquisition of MAN by Volkswagen
Brussels, 26 September 2011 - The European Commission has cleared under the EU Merger Regulation the proposed acquisition of MAN SE by Volkswagen AG, both of Germany. The Commission concluded that the proposed transaction would not significantly impede effective competition in the EEA1 because the merged entity would continue to face strong competition from other well established manufacturers.
The Commission examined the transaction's impact on the supply of heavy trucks, buses, chassis and diesel engines.
For heavy trucks the merged entity would become the number one supplier in Europe and market leader with high market shares in a number of national markets.
For buses the merged entity would become the second largest supplier in Europe and market leader in some sub-segments (city buses, intercity buses, coaches) in some Member States.
However, the Commission's investigation showed that European heavy truck and bus markets would remain competitive after the merger, because the merged entity will continue to face strong competition from other well established manufacturers such as Daimler, Volvo, Iveco and DAF in trucks and Daimler, Volvo, Iveco, Solaris and VDL in buses.
Moreover, the vast majority of competitors and customers confirmed to the Commission that there have been no substantial changes in the heavy truck or bus markets since the Commission authorised a merger between MAN and Scania in 2006 (see IP/06/1868), although this merger never took place.
As regards diesel engines, the merging parties are involved to a certain extent in the manufacture of engines for marine and industrial applications as well as engines for diesel energy generators (GenSets). The Commission's investigation has shown that the transaction would not give rise to competition concerns in the EEA for such markets, since most of the time the products of the merging parties do not compete directly. Moreover, the merged entity would continue to face competition from a number of other established manufacturers such as Caterpillar, Tognum, Volvo or Cummins.
The proposed transaction was notified to the Commission on 22 August 2011.
Volkswagen is a German-listed company mainly engaged in the development, manufacturing, selling, and distribution of motor vehicles. Volkswagen also controls Scania AB, a Swedish manufacturer and distributor of heavy trucks and buses. Scania also produces marine and industrial engines for various applications, as well as power generation engines.
MAN is a publicly traded company headquartered in Munich, Germany. It produces and supplies commercial vehicles, trucks, busses, turbo machinery, mechanical engineering equipment, as well as special gear units and engines, including diesel engines for marine, industrial and power generation applications.
Merger control rules and procedures
The Commission, in 1989, was given the power to assess mergers and acquisitions involving companies with a turnover above certain thresholds (see Article 1 of the Merger Regulation). Its duty is to prevent concentrations that would significantly impede effective competition in the EEA or any substantial part of it.
The vast majority of mergers do not pose competition problems and are cleared after a routine review. From the moment a transaction is notified, the Commission generally has a total of 25 working days to decide whether to grant approval (Phase I) or to start an in-depth investigation (Phase II).
EU merger clearance does not prejudge the result of other possible probes under State aid or antitrust rules.
A non-confidential version of today's decision will be available at:
Amelia Torres (+32 2 295 46 29)
Marisa Gonzalez Iglesias (+32 2 295 19 25)
Maria Madrid Pina (+32 2 295 45 30)
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