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Image header Agence Europe
Europe Daily Bulletin No. 10477
Contents Publication in full By article 29 / 32
GENERAL NEWS / (ae) eu/competition

Green light to Caterpillar/MWM merger

Brussels, 19/10/2011 (Agence Europe) - On Wednesday 19 October, the European Commission authorised the purchase of the German maker of reciprocating engine generator sets, MWM, by the American company Caterpillar. A detailed investigation begun in May of this year showed that although the two companies are active in the same sector, they are not close competitors. Additionally, although the entity born of the merger will take a leading position on the market in question, it will still face a sufficient number of other sufficiently strong suppliers in Europe and elsewhere in the world. Furthermore, the operation is unlikely to lead to major changes to the structure of the market, due to the heterogeneity of the products and customers and the strong competition which exists in the sector in research and development efforts aimed at increasing the electrical efficiency of the generator sets. Lastly, the new entity is unlikely to restrict access to bare gas engines or their components, as there is credible competition from other suppliers whose capacity will not be limited by the merger. (FG/transl.fl)

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