Brussels, 23/11/2010 (Agence Europe) - On Tuesday 23 November, the European Commission approved acquisition of the French manufacturer of automotive textiles, Michel Thierry Group (MTG), by the American supplier of automotive components and systems, Johnson Controls Inc. (JCI).
MTG is one of the main automotive textile manufacturers and the two companies work in complementary areas in that textiles produced by MTG may be used by JCI for the assembly of complete seats and the production of other interior car components such as door panels, etc, an area in which JCI specialises.
The transaction, notified on 15 October, is not expected to prevent effective competition, given the fact that there are many other suppliers and customers in that sector. The parties involved will therefore not have the incentive or ability to close out potential competitors in a market where, moreover, car manufacturers produce part of the textile components they use in-house, choosing most of the textile suppliers and seat component manufacturers, determine product prices and have an interest in keeping a sufficient number of potential suppliers of textiles and components. (F.G./transl.jl)