Brussels, 05/04/2007 (Agence Europe) - On 3 April, the European Commission approved the proposed acquisition of certain subsidiaries of Teksid Aluminum of Bermuda by Nemak of Mexico. Nemak, controlled by Alfa S.A.B. de C.V, is active internationally in the production of aluminium castings for the automotive industry. The target, TK Aluminum "A", is a carve-out of several production facilities of Teksid Aluminum which produces castings for the automotive industry. In Europe, the only plant subject to the acquisition is located in Poland. Within the European Economic Area (EEA), TK Aluminum "A" supplies only aluminium cylinder heads and other automotive components, whereas Nemak produces aluminium cylinder heads and engine blocks.
The Commission's market test confirmed the findings of its recent decision in the same sector that, given the current supply practice of car manufacturers, both the market for cylinder heads and the market for engine blocks are European-wide in scope. The Commission's analysis also showed that the merged entity would not have market power to allow it to raise prices profitably. The Commission concluded that the proposed transaction would not significantly impede competition in the European Economic Area (EEA) or any substantial part of it.