Brussels, 22/04/2008 (Agence Europe) - On Tuesday 22 April, the European Commission cleared the proposed acquisition of Protac by Roxel. The two French companies supply propulsion systems for guided weapons. The Commission investigation looked at several aspects of the relations between the companies, which form part of a complex network of control and shareholding. Firstly, Protac is ultimately wholly owned by MBDA, which also owns part of Roxel. Furthermore, MBDA (itself a BAE Systems plc, EADS N.V and Finmeccanica S.p.A. joint venture) produces missiles which use propulsion systems manufactured by the parties to the concentration. The Commission, on the basis of a previous defence industry analysis of the sector, concluded, however, that the vertical and horizontal effects did not represent an obstacle to free competition. Thirdly, the Commission noted that the French company SNPE S.A., which indirectly owns part of Roxel, markets certain chemical substances used in the manufacture of the fuel (propergol) for the propulsion systems made by both Protac and Roxel. The investigation again concluded that this did not represent an obstacle, given that Protac does not buy these substances directly, and that other suppliers were present on the market. (C.D.)