European Commission - Press release
Mergers: Commission approves acquisition of Philips' branded colour TVs business by TPV
Brussels, 24 February 2012 - The European Commission has cleared under the EU Merger Regulation the proposed acquisition of the branded colour TV business of the Dutch company Koninklijke Philips Electronics N.V. by TPV Technology Limited, a manufacturer of colour TVs and computer monitors based in Bermuda. The Commission concluded that the transaction will not raise competition concerns due to the limited overlaps between the parties' activities and to the fact that sufficient alternative sources of supply will continue to be available to the merged entity's customers in all markets concerned.
The proposed transaction would lead to an overlap in the market for the sale of branded LCD colour TVs, where both TPV - with its AOC brand - and the Philips business to be acquired are active. However, the Commission found that this overlap was very limited and that, under all possible market definitions, the merged entity would continue to face several strong, effective competitors.
Furthermore, the operation would create a vertical relationship between TPV's upstream supply activities at the original equipment manufacturers (OEM) level for unbranded LCD colour TVs and Philips' downstream activities in the sale of branded LCD colour TVs. However, the merged company would have a limited presence both in the upstream supply of OEM unbranded LCD colour TVs and the downstream sale of branded LCD colour TVs. As a result, it would not have the ability or the incentive to either stop supplying competitors on the downstream market for the sale of branded LCD Colour TVs, or to stop sourcing from competitors on the upstream market for the supply of unbranded LCD colour TVs.
The Commission therefore concluded that the transaction would not significantly impede effective competition in the European Economic Area (EEA1) or any substantial part of it.
Companies and products
TPV is a display solutions provider, active in the design and production of a full range of computer monitors and TVs both on a third-party original equipment manufacturer (OEM) basis for its distribution worldwide, and under its own brand AOC. TPV already acquired licensing rights to sell Philips' branded computer monitors globally and Philips' branded colour TVs in China (see IP/10/1488).
The business to be acquired (the target), relates to the design, manufacturing, distribution, marketing and sales of Philip's branded colour TVs worldwide, with the exclusion of China, India, the US, Canada, Mexico and certain countries in South America.
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).
The operation was notified to the Commission on 20 January 2012. More information on the case will be available at:
The EU plus Iceland, Liechtenstein and Norway.