Brussels, 10/05/2007 (Agence Europe) - On 10 May, the European Commission approved the acquisition of the automotive battery business of the Italian FIAMM group by VB Autobatterie GmbH of Germany. The approval decision is subject to conditions that remedies to competition concerns are also implemented.
VB Autobatterie GmbH (the automotive starter battery joint venture of Johnson Controls Inc. of the United States and the German Robert Bosch GmbH) notified its planned acquisition of the automotive battery business of FIAMM on 26 October 2006. The Commission's in-depth market investigation confirmed initial concerns that the proposed acquisition, as originally notified, would significantly impede competition in the respective markets for car and truck batteries by making VB the dominant player. The Commission took into account, in the assessment of the transaction, the likely effects on the market stemming from FIAMM's financial difficulties.
VB offered remedies to address the concerns both in the European Economic Area-wide original equipment car and truck markets and the respective national replacement part (IAM) markets. These included the divestiture of certain manufacturing capacity and of some key FIAMM brands relevant to the replacement part (IAM) markets of Italy, Austria, the Czech Republic and Slovakia. The Commission carefully assessed the remedies and concluded that the remedy package would be sufficient to remove competition concerns in a clear-cut manner. (cd)