Brussels, 11/05/2009 (Agence Europe) - On Thursday 7 May, the European Commission authorised Magna International from Canada to acquire the Czech-based operations of bankrupt U.S. rival Cadence Innovation LLC. After examining the transaction, the Commission concluded that it would not significantly impede competition in the European Economic Area (EEA) or any substantial part of it.
The Council's Regulation 4064-89 of 21 December 1989 was amended by the 30 June 1997 regulation and organises European Commission control of Community concentration operations. Authorisation depended on the criteria for the creation or reinforcement of companies' dominant positions.
Magna is a car parts provider with a variety of activities throughout the world. Cadence Innovation s.r.o is responsible for the Cadence Innovation LLC (US)) activities in Europe and has manufacturing sites in the Czech Republic and Hungary. It specialises in bumpers, radio grills, instrument panels, day boards and other plastic moulded parts. The different parties' activities only overlap in a limited sense and the cumulated market parts of the company created by the merger will be relatively low.
Magna and Cadence customers confirmed that they would find it easy to obtain bumpers from other suppliers and that the proposed operation is not expected to have negative effects on the markets in question.
The Commission therefore concluded that the operation did not cause competition problems. (H.D./trans/rh)