Brussels, 24/10/2003 (Agence Europe) - The European Commission has decided to open a detailed investigation into the acquisition of the French group, SNFA, by the German company, INA Holding Schaeffler KG, through the intermediary of its subsidiary, FAG, and the American International Group (AIG) insurance company. The operation will have a major impact on the machine tool precision bearing market and that of aerospace bearings. SNFA is specialised in the design, production, distribution and marketing of anti-friction precision bearings, in particular for aerospace and machine tool industries. INA is present worldwide in the development, production and sale of precision components for the automotive and other industries, including anti-friction bearings. Its subsidiary, FAG, also operates at international level in the anti-friction bearing and bearing components sector. After a preliminary investigation, the Commission noted that INA/FAG and SNFA will be, by far, the largest supplier of ball bearings and precision bearings used for machine tool applications, a market on which three or four main players already make up over two-thirds of total sales. The Commission's initial probe appears to indicate significant market entry barriers and customers with limited buying power. As far as aerospace bearings are concerned, the operation would create an even stronger force by merging the first and third largest suppliers to European aero-engine manufacturers. The in-depth investigation will determine whether competition will be significantly hampered on the markets in question.