Brussels, 15/02/2005 (Agence Europe) - The Commission has opened the second phase of its investigation under the EU Merger Regulation into the planned acquisition by the German Siemens group of the Austrian company VA Tech, which aimed to acquire at least 90% of its competitor for EUR 995 million. It now has four months to investigate whether the proposed acquisition will significantly lessen effective competition in the European Union and the EFTA markets. “This takeover is in a strategically important sector for the EU economy”, commented Competition Commissioner Neelie Kroes. Following the Commission's initial market investigation, its fears now focus on the horizontal overlaps and vertical links in markets such as hydro power equipment, electricity transmission & distribution equipment, rail transport equipment metallurgical plant building, infrastructure and building technology. Both Siemens and VA Tech are active worldwide in a range of similar businesses. Their products are used in areas such as power plants, high-voltage transmission lines, locomotives, steel plants and large buildings. The Commission now has four months to take a final decision on which the US and Canadian competition authorities will have to decide as well.