Brussels, 31/03/2006 (Agence Europe) - The European Commission has approved the proposed acquisition of Volkswagen Bordnetze GmbH, a joint venture company of the Volkswagen and Siemens Groups, by the Japanese company Sumitomo Electrical Industries. Sumitomo supplies automotive wire harnesses, a sector in which Volkswagen Bordnetze is also active. After examination, the Commission concluded that the transaction would not significantly impede effective competition in Europe, since there were only limited overlaps between the merging parties. The new entity will continue to face competition from existing competitors in the market, where large motor vehicle manufacturers enjoy significant buying power.