Brussels, 10/11/2006 (Agence Europe) - On 7 November, in virtue of the EC regulation on mergers, the European Commission authorised the acquisition by the Dutch company Philips of the American company Intermagnetics. The principal interest for Philips lies in the fact that Intermagnetics currently provides it with certain products, notably radio-frequency coils for the manufacture of magnetic resonance imaging (MRI) systems. The investigation carried out into the market nonetheless showed that there would be little danger that this merger would allow the new entity to distort the supply of coils to rival manufacturers of MRI systems and applications, given the economic incentives and the presence on the market of other suppliers of these coils. The Commission therefore concluded that the case would not significantly hinder the exercise of effective competition within the European Economic Area (EEA) or in a substantial part thereof. The board of directors of Philips sees in the operation an opportunity to "increase our market share in the short-term (...) and to develop the established base", and more strategically to take a more advantageous position in future demand for MRI equipment, according to Jouko Karvinen, a board member of Philips and CEO of Philips's medical Systems division. As for Intermagnetics, the Chairman and Chief Executive Officer Glenn H. Epstein explains that this union of technical resources, combined with Philips's experience in MRI systems and their applications, is a "unique opportunity which will also benefit the MRI market as a whole". (cd)