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Image header Agence Europe
Europe Daily Bulletin No. 7989
Contents Publication in full By article 20 / 41
GENERAL NEWS / (eu) eu/competition

Commission authorises acquisition of Auwarter by MAN

Brussels, 20/06/2001 (Agence Europe) - Following an in-depth investigation, the European Commission finally gave the go ahead to the planned acquisition of the German bus and coach manufacturing company Auwarter by MAN, feeling that the merger of the parties activities would leave sufficient room for competitors. A first investigation was unable to end the European executive's concerns, which had put forward fears, in particular, over a merger in the German market for buses used in urban transport, where MAN and Auwarter both hold a significant share above 40% (see EUROPE of 17 February, p.9). The Commission thus decided to begin a second phase of the procedure. At its end, it reached the conclusion that the DaimlerChrysler group would continue to be the main manufacturer of buses through its EvoBus subsidiary, ahead of MAN/Auwarter. The Commission also verified whether the merger risks creating a collective domination on the German market through a tacit coordination by the two groups, but concluded that the risks of such behaviour where nearly none existent. On the one hand, it found that any tacit sharing of the market between EvoBus and MAN/Auwarter was improbable when taking into account the absence of a coordination mechanism. On the other hand, due to significant differences, among others at the cost structure level, the two groups would be more likely to compete than collude. Given these elements, the merger by the German groups was authorised.

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