The European Commission conditionally approved, on Friday 12 April, the proposed acquisition of Embraco, Whirlpool's refrigeration compressor division, by Nidec.
Nidec and Embraco are two of the world's leading producers of refrigeration compressors used in household appliances and light commercial applications. Nidec, based in Japan, is also active in the engineering, manufacture and distribution of a range of electric motors and motor application products.
Following the notification of the operation on 8 October, the Commission opened an in-depth investigation into the project on 28 November, fearing that the merger would distort competition in the sector (see EUROPE 12149/30). At the end of its investigation, the institution was still concerned about the potential negative effects of the operation on competition in fixed speed refrigeration compressors for light commercial applications and variable speed refrigeration compressors for light commercial and household applications.
In response to the Commission's concerns, Nidec has proposed that it lets go of its refrigeration compressors business for both household and light commercial applications. The company has also committed to providing the purchaser of the transferred business with substantial financing for future investments in facilities.
The Commission concluded that the operation would not distort competition in the refrigeration compressor sector, neither in the European Economic Area, nor worldwide. In light of the European Union's competition law rules, it has therefore given the merger the green light, subject to compliance with the abovementioned commitments. (Original version in French by Lucas Tripoteau)