IP/02/1276

Brussels, 10 September 2002

Commission clears Kohlberg Kravis & Roberts's acquisition of several Siemens units

The European Commission has cleared the acquisition of seven Siemens business activities and subsidiaries by investment firm Kohlberg Kravis & Roberts. The Siemens units involved are active in various fields including plastics machinery, gas springs and data communication. The transaction does not raise any competition concerns since the acquiring company presently has no or little presence in the markets concerned.

Kohlberg Kravis & Roberts Co. L.P. (KKR) is a US-based investment company. It proposes to acquire the Siemens businesses through two Canadian funds and a Luxembourg holding company in which Siemens will retain a non-controlling minority shareholding. The Siemens subsidiaries being acquired are all based in Germany and they are: Demag Cranes Components GmbH & Co. KG, Gottwald Port Technology GmbH & Co. KG, Mannesmann Plastics Machinery AG, and Stabilius GmbH. KKR will also acquire the three Siemens business units "Ceramics", "SENS" and "Metering".

The product markets concerned by the deal are the design of cranes, harbour logistic solutions, plastics machinery, gas springs and hydraulic dampers, technical ceramics, corporate data networks and electricity and heat meters.

The deal presents no or little overlap, since KKR presently has no activities in the fields concerned with the exception of data and voice communication. The Commission also identified a vertical relationship in the area of gas springs used for automatic telling machines in which another of KKR's portfolio companies is active, but this was considered insignificant.