Brussels, 04/10/2004 (Agence Europe) - Volvo Group by the American company ArvinMeritor (“ARM”), a global manufacturer of automotive parts in France and Sweden. The assets being acquired are involved in the production of non-driven axles for Volvo-branded trucks and buses and Renault-branded trucks, driven axles for Renault-branded trucks, and axle housings. The Commission has identified an overlap between the parties is in the market for driven axles for trucks of 6 tonnes or more. In Europe over 70% of total demand for such axles is met by in-house manufacture, that is, by production facilities owned by the truck manufacturers themselves (Iveco, MAN, Scania, DAF, etc). There are only two non-captive suppliers active in Europe, ARM and AA/Albion which faces competition, both actual and potential, from the truck manufacturers themselves, who can choose to source in-house, or by means of supply arrangements with other truck manufacturers. Moreover Volvo will enter into a supply agreement whereby all of its axle requirements will be met by ARM for the next few years. According to the Commission, the transaction will only slightly change competitive conditions in the market, as Volvo will only gradually begin to supply other customers.