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Brussels, 17 November 1999

Commission clears acquisition by Tyco of Siemens' electromechanical components business

The European Commission has approved the acquisition of Siemens' electromechanical components business by Tyco International Ltd. The operation concerns the markets of connectors and sensors. Although this operation will reinforce Tyco's presence in the different connector segments in Europe it will not result in any significant increase of Tyco's present position in the overall connector and sensor markets. Consequently the operation does not raise competition concerns.

Tyco International Ltd. (Tyco) is a global operator in different sectors, mainly medical supplies; fire detection and security systems; flow control products; electrical and electronic components, and cable accessories and systems for different applications. Siemens AG (Siemens) is a German base global provider of electronic engineering and electronics products and services. The operation involves the acquisition of Siemens' subsidiaries in the electromechanical components sector.

The markets involved in the operation are electromechanical components, which both parties produce in the EEA area, namely: connectors and sensors for different industrial applications. Tyco is already market leader in the sale of connectors. Following this operation the market share will be between 15 - 20 % in all segments except for the automotive segment where it will between 25 - 30 %. However the increase of Tyco's present market position is very small both in the overall market and in all segments. In the automotive segment customers are major manufacturers with significant bargaining power. Nevertheless, given the fact that, apart from Siemens the automotive segment is very fragmented with a high number of small competitors in a weaker position to compete, future operations in the automotive segment will have to be carefully analysed. As for sensors, both companies' range of products have complementary products and market shares are very small.

For these reasons the Commission decided not to oppose this operation and to declare it compatible with the common market and with the EEA Agreement.

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