Brussels, 29/03/2010 (Agence Europe) - The European Commission has approved the proposed acquisition of Areva T&D Holding SA by Alstom Holdings and Schneider Electric. The subsidiary of the French nuclear group Areva manufactures equipment for the transmission and distribution of high- and medium-voltage electrical power. Under the agreement, Schneider will acquire Areva's distribution business. Alstom will acquire the transmission activities, along with a limited number of distribution activities of Areva, the Commission says, concluding that the double operation will not significantly impede effective competition in the European Economic Area (EEA) or any substantial part of it.
In a press release issued on Friday 26 March, the Commission says that the Areva's distribution business is to be divested to Schneider within 12 months of the closing of the transaction, while Alstom will retain the high voltage activities (52kV and 800kV) and some specific medium voltage (1 kV and 52 kV) activities.
Noting that Alstom is not active in the same markets as Areva, the Commission checked the relationship between Alstom's activities in equipment for gas-and-steam, hydro electric power plants and railway transport, and Areva's activities in T&D equipment. It concluded that the parties would continue to face competition from a significant number of active and potential market players both in the EU and at global level.
In the Schneider-Areva transaction, the Parties' activities significantly overlap in the production of circuit breakers, switchgears and distribution transformers, as well as in several sub-segments of this market. The Commission's investigation demonstrated that the companies would face significant competitors that also supply the whole range of products as well as customers with significant buying power. (A.B./transl.rt)