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Image header Agence Europe
Europe Daily Bulletin No. 7889
Contents Publication in full By article 34 / 74
GENERAL NEWS / (eu) eu/competition

Commission authorises merger between Metso and Svedala, subject to conditions

Brussels, 25/01/2001 (Agence Europe) - After an in-depth four month investigation, the European Commission finally authorised the merger between the Finnish company Metso Corporation and the Swedish company Svedala AB on condition of certain undertakings. Fearing the creation of a dominant position in the market for the production of rock crushing equipment, the European executive had decided last September to continue its investigation into this operation (see EUROPE of 22 September, pages 10-11). The fears concern the specific markets for cone crushers for the production of aggregate and construction in most of the Member States, jaw crushers for the production of aggregate in Nordic countries, and large cone crushers for the mining sector in the EEA as a whole and primary gyratory crushers for the mining sector, also in the EEA as a whole. Other than a significant cumulation of market shares for these four kinds of equipment, the operation also posed problems concerning the competitiveness of competitors companies as Metso and Svedala both benefit from an excellent reputation, offering a wide range of products and covering a very large geographic area. Finally, there exists numerous barriers to the entry of competitors on the market for stone crushing equipment, on the one hand because clients hate to take risks and, on the other hand, because the local presence as well as the quality of the after-sales services form crucial factors on these markets. In order not to put their agreement in peril, the parties have undertaken to sell all of the Svedala activities in the field of cone and jaw crushers as well as those of Metso for primary gyratory crushers. The Commission authorised to operation on condition that the parties fully respect their undertakings.

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