Brussels, 21/12/2006 (Agence Europe) - On 20 December, the European Commission approved the proposed acquisition of Scania AB (Sweden) by MAN AG (Germany), thus opening the road to a merger between two of the largest European manufacturers of heavy trucks and buses. After looking at all the markets affected by the deal, the Commission concluded that the operation proposed would not be a significant obstacle to effective competition on the EU market, or in the European Economic Area. The Commission in fact considers that, even after the acquisition, European markets for coaches and buses and heavy trucks would remain competitive as the new entity will always be confronted by significant competition from a number of other major manufacturers such as DaimlerChrysler, Volvo, Iveco and DAF. “The Commission is satisfied that competition on price and technology will remain strong in the future on the bus and truck markets, in particular considering the increasing importance of environmentally-friendly technologies in this sector”, commented Commissioner Neelie Kroes.
Sweden. On the Swedish market for city buses, the merger between MAN and Scania would lead to a relatively high market share for the merged entity. The Commission examined whether customers would be adversely affected as a result of the proposed concentration, for example through price increases for city buses or reduced competition for environmentally-friendly bus technologies in Sweden. The Commission concluded that MAN's proposed acquisition of Scania as an independent supplier of city buses is unlikely to significantly impede competition in this market, which is currently very competitive. The presence of several large buyers such as the pan-European bus operators Arriva, Keolis and Veolia (formerly Connex), and competition in Sweden from well-established suppliers Volvo and DaimlerChrysler (with significant market shares), as well as other smaller bus manufacturers, ensures that competition would continue to be effective in this market.
Portugal/Spain. In the Spanish and Portuguese markets for inter-city buses and tourist coaches, MAN and Scania would also have high market shares. The Commission's investigation, however, concluded that not only DaimlerChrysler, Volvo and Iveco are well-represented on these markets but also that there are a number of local bus manufacturers who buy ready-made chassis, build the bus body themselves and sell the finished buses to end-customers. These bodymakers have a strong local presence and are close to the customers. The combined presence in Spain and Portugal of large integrated bus manufacturers and local bodymakers allowed the Commission to conclude that the proposed merger would not reduce competition in these markets.
Austria. The combined MAN-Scania entity will be the largest supplier by far on the Austrian heavy truck market. DaimlerChrysler, Volvo, DAF and Iveco are also present and there are no capacity constraints that would prevent these competitors from increasing their sales if MAN and Scania were to try to raise prices after the proposed merger, the Commission says. (hb)