Navigation path

Left navigation

Additional tools

Other available languages: FR DE ES NL

European Commission - Press release

Mergers: Commission clears acquisition of Spanish light fixture manufacturer Indal by Philips

Brussels, 23 November 2011 - The European Commission has cleared under the EU Merger Regulation the proposed acquisition of Industrias Derivadas del Aluminio S.A. (Indal) of Spain by Philips of the Netherlands. The Commission concluded that the proposed transaction would not raise competition concerns because the merged entity would continue to face sufficiently strong competition from other well-established manufacturers in the markets for lamps, light fixtures, light fixture components, light-emitting diodes (LEDs) and LED modules.

The activities of Philips and Indal overlap for the manufacture of professional light fixtures. Furthermore, there are vertical relationships between Indal, as a manufacturer of professional light fixtures, and Philips, as a manufacturer in the upstream markets for lamps, light fixture components, LEDs and LED modules.

As regards the professional light fixture market, the merged entity would become a leading supplier in Europe and the number one supplier with significant market shares, especially in the outdoor segment, in a number of Member States.

However, the Commission's investigation showed that even in those Member States the professional light fixture markets would remain competitive after the proposed transaction because the merged entity would continue to face sufficiently strong competition from other well-established manufacturers across the European Economic Area (EEA) 1 , such as Schréder and Zumtobel-Thorn.

As regards the vertical relationships, the Commission's investigation showed that there are alternative suppliers in the upstream markets. Furthermore, Indal's purchases from Philips currently represent a small percentage of Philips' sales. Therefore, the merged entity would not have the ability nor the incentive to shut out customers or competitors.

The Commission therefore concluded that the proposed transaction would not significantly impede effective competition in the EEA.

The proposed transaction was notified to the Commission on 17 October 2011.

Background

Philips is a diversified group active in the fields of healthcare, lighting and consumer lifestyle having its headquarters in the Netherlands. Within the lighting sector, it is active in the production, development and sale of general purpose lamps, light fixtures and components for light fixtures as well as solid-state lighting and special lighting applications.

Indal is a Spanish industrial holding active in the field of professional lighting. The group primarily focuses on technical lighting which includes industrial and outdoor applications for the industrial sector, road and amenity as well as interior lighting and integrated ceiling products for the industrial and professional sectors.

Merger control rules and procedures

The Commission has the duty to assess mergers and acquisitions involving companies with a turnover above certain thresholds (see Article 1 of the Merger Regulation ) and 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).

A non-confidential version of today's decision will be available at:

http://ec.europa.eu/competition/elojade/isef/case_details.cfm?proc_code=2_M_6357

Contacts :

Amelia Torres (+32 2 295 46 29)

Marisa Gonzalez Iglesias (+32 2 295 19 25)

1 :

The EU plus Iceland, Liechtenstein and Norway.


Side Bar