On Friday 1 June, the European Commission approved the acquisition of General Electric Industrial Solutions (GEIS) by ABB, considering that the operation would not bring about a competition distortion in the European Economic Area (EEA).
The two companies, which are both active in the production and sales of electrical components and systems, notified the transaction to the Commission on 20 April of this year.
Following an examination of the acquisition, the institution took the view that the future entity would still face effective competition from major competitors and specialist or local players at a horizontal level. Due to the homogenous and interchangeable nature of the products of different trademarks of electrical components and systems, the analysis also showed that the clients of the customers concerned would not be disadvantaged in their choices as a result of the merger between GEIS and ABB. Finally, in the market segments in which both companies are active at different levels of the supply chain, the merged entity would not be able to exclude its competitors, due to the presence of other suppliers.
The Commission therefore concluded that the transaction was compatible with EU competition law and cleared it. (Original version in French by Lucas Tripoteau)