On Thursday 18 March, the European Commission approved the proposed acquisition of Eaton’s hydraulic business (Eaton Hydraulics) by Danfoss.
Danfoss (Denmark) and Eaton Hydraulics (Ireland) are both leading global manufacturers of hydraulic components, which are used to manufacture hydraulic systems for various types of machinery.
The Commission was concerned that the transaction, as initially notified, would harm competition due to the combination of the two companies’ hydraulic components businesses for mobile machinery, also known as ‘mobile applications’ (for example, agricultural and construction machinery).
To alleviate the Commission’s concerns, Danfoss has proposed the following commitments: - the divestment of parts of Danfoss’ hydraulic steering unit (HSU), electro-hydraulic steering valves (ESV) and orbital motor businesses (Danfoss plants in Wrocław, Poland, Parchim, Germany and Hopkinsville, USA). - the transfer of Eaton’s medium-duty orbital motor production lines (HP and VIS models), Eaton’s Series 10 HSU production line and production assets for Eaton’s ESV portfolio to the Hopkinsville plant.
Danfoss has also committed to transferring additional Danfoss and Eaton technology for HSUs.
Thanks to these commitments, the divestment business will have a wide-ranging portfolio for each of the following products: HSUs, ESVs and orbital motors. (Original version in French by Lionel Changeur)