Brussels, 11/12/2008 (Agence Europe) - On Wednesday 10 December, the European Commission cleared the proposed acquisition of Swedish manufacturer of hydraulic drives systems and motors Hägglunds Drives AB by Robert Bosch GmbH of Germany.
The parties' activities overlap in the hydraulic drive systems for industrial applications and hydraulic motors sectors. There is also a vertical relation between the parties as Hägglunds Drives purchases hydraulic pumps produced by Robert Bosch. The Commission's detailed examination confirmed that after the transaction the customers would still have reliable alternative suppliers and that, for all products concerned, the combined entity would continue to face several strong competitors. Furthermore, the Commission notes, Hägglunds' main products (hydraulic motors with high torque and low speed) have unique characteristics so that the merger would not lead to a significant change of the competitive structure. In addition there are competitive constraints in these sectors from companies producing electric motors and drive systems. The Commission also examined the vertical relationship and concluded that there were no indications that the merged entity would have any incentive to close off supplies of hydraulic pumps to companies seeking to buy them. (O.L./transl.rt)