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Image header Agence Europe
Europe Daily Bulletin No. 8607
Contents Publication in full By article 27 / 35
GENERAL NEWS / (eu) eu/competition

Acquisition of Valcra (tractors) by AGCO is cleared

Brussels, 15/12/2003 (Agence Europe) - The European Commission has approved the acquisition of Valtra Inc, a Finnish-based tractor manufacturer, by AGCO Corporation, a US-based manufacturer and distributor of agricultural equipment, from Kone Corp. AGCO owns two tractor manufacturing plants in Europe: one in Beauvais, France, and the other in Marktoberdorf, Germany. The brands marketed by AGCO in EEA countries are "Massey Ferguson" and "Fendt". Valtra, for its part, makes tractors for the European market in Suolahti, Finland, tractors that it markets under its name. It also owns Sisu Diesel Inc., a manufacturer of off-road diesel engines, including engines for tractors. The Commission has noted that the operation will lead to overlap on the standard tractor market, especially in Finland, Sweden and Norway where the market share will reach 40% or more. Nonetheless, the presence of strong competitors will prevent the new entity from holding a monopoly position.

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