2005/907/EC: Commission Decision of  13 July 2005  amending the Decision 2002/191/EC declaring a concentration to be compatible with the common market and the EEA Agreement (Case COMP/M.2139 — Bombardier/ADtranz)  (notified under document number C(2005) 2683)   (Text with EEA relevance)
Date: 2005-07-13
Institutions: European Commission
Subjects: economic concentration, electrical industry, merger control, railway industry

16.12.2005

EN

Official Journal of the European Union

L 329/35

COMMISSION DECISION

of 13 July 2005

amending the Decision 2002/191/EC declaring a concentration to be compatible with the common
market and the EEA Agreement (Case COMP/M.2139 — Bombardier/ADtranz)
(notified under document number C(2005) 2683)

(Only the English text is authentic)

(Text with EEA relevance)

(2005/907/EC)

THE COMMISSION OF THE EUROPEAN COMMUNITIES,

(2)

Having regard to the Treaty
Community,

establishing the European

Having regard to the Agreement on the European Economic
Area, and in particular Article 57 thereof,

Having regard to Council Regulation (EEC) No 4064/89 of 21
December 1989 on the control of concentrations between
undertakings (1), and in particular Article 8(2) thereof,

Having regard to Council Regulation (EC) No 139/2004 of 20
January 2004 on the control of concentrations between under-
takings (the EC Merger Regulation) (2), and in particular Article
26(2) thereof,

Having regard to the Commission Decision 2002/191/EC of
3 April 2001 declaring a concentration to be compatible with
the common market and the functioning of the EEA Agreement
(Case COMP/M.2139 — Bombardier/ADtranz) (3),

After consulting the Advisory Committee on Concentrations (4),

Whereas:

(1)

On 3 April 2001, the Commission declared a concen-
tration whereby Bombardier Inc. acquired within the
meaning of Article 3(1)(b) of Regulation (EEC) No
4064/89 sole control of the undertaking DaimlerChrysler
Rail Systems GmbH (ADtranz) compatible with the
common market and with the functioning of the EEA
Agreement. That declaration of compatibility was subject
to full compliance with several conditions and obli-
gations as set out in the Annex to the Decision.

(1) OJ L 395, 30.12.1989, p. 1. As corrected by OJ L 257, 21.9.1990,
p. 13. Regulation as last amended by Regulation (EC) No 1310/97
(OJ L 180, 9.7.1997, p. 1).

(2) OJ L 24, 29.1.2004, p. 1.
(3) OJ L 69, 12.3.2002, p. 50.
(4) OJ C 321, 16.12.2005.

(3)

(4)

(5)

One of the conditions concerned the undertaking Elin
EBG Traction (ETR), a subsidiary of VA Tech AG, estab-
lished in Linz, Austria. Bombardier had joint control over
ETR, a supplier of electrical propulsion for rail rolling
stock. Severing ETR’s structural
link with Bombardier,
turned
as required by paragraph 1(a) of
that company into an independent supplier of propulsion
technology for,
and
trams/light rail vehicles. Nevertheless, certain guarantees
were necessary for a transitional period in order to allow
ETR to find new partners, replacing Bombardier, which
became vertically integrated after
the acquisition of
ADtranz and, thus, was no longer to rely on ETR as a
supplier of electrical propulsion equipment.

among others,

the Annex,

regional

trains

These guarantees were intended to create a workload for
ETR for a transitional period in order to enable it to
in
survive economically. The condition as
paragraph 1(b) of the Annex provided for Bombardier
to enter into a Joint Development Agreement with ETR
for cooperation between these two companies until 2006
in relation to the tram ‘CityRunner Type Linz’, for which
ETR supplies the electrical traction, thereby allowing ETR
to continue to be active in the market for trams.

set out

On 10 January 2005, Siemens notified its planned acqui-
sition of sole control, within the meaning of Article
3(1)(b) of
the EC Merger Regulation, of VA Tech,
whereby it would also acquire control of ETR. Siemens
is a leading supplier of rail rolling stock which manu-
factures its own electrical traction for all types of rolling
stock it offers. On 13 July 2005, pursuant to Article 8(2)
of the EC Merger Regulation, the Commission declared
the acquisition of VA Tech by Siemens compatible with
the common market and with the functioning of the EEA
Agreement, subject to several conditions and obligations
as set out in the Annexes to that Decision.

As part of Siemens, ETR has the financial background of
a multinational firm which is a leader in rolling stock.
Therefore, ETR no longer needs secured orders for its
economic survival as was deemed necessary in 2001
when the structural
link with Bombardier was severed.
It is, consequently, no longer necessary to impose on
Bombardier
electrical
traction for its CityRunner Type Linz from ETR, should
Siemens acquire sole control of ETR.

condition to source

the

the

L 329/36

EN

Official Journal of the European Union

16.12.2005

(6)

The acquisition of VA Tech by Siemens has been
declared compatible with the common market and with
the functioning of the EEA subject to compliance with
certain conditions. However, there is a possibility that
that decision will be revoked pursuant to Article 8(6)
of the EC Merger Regulation. This Decision, therefore,
is conditional on the Commission Decision of 13 July
2005 in case COMP/M.3653 — Siemens/VA Tech (1)
remaining in force,

HAS ADOPTED THIS DECISION:

proposes to acquire sole control over VA Tech AG (Case
COMP/M.3653 — Siemens/VA Tech) compatible with the
common market and the EEA agreement, subject to certain
conditions and obligations, and

(b) the implementation of the proposed concentration referred

to in point (a).

Article 3

Article 1

This decision is addressed to:

Article 2 of Decision 2002/191/EC is replaced by the following:

‘Article 2

Article 1 is subject to full compliance with the conditions set
out in paragraphs 1(a), first subparagraph, 1(c), 1(d), 1(e), first
and fourth subparagraphs, 1(f), 1(g), 1(h), and 1(i) of the
Annex.’

Bombardier Inc.
800 René-Lévesque Blvd. West,
Montréal
Canada — H3B 1Y8 — Québec.

Article 2

Done at Brussels, 13 July 2005.

This decision shall be conditional on

(a)

the remaining in force of the Commission Decision of 13
July 2005 declaring the concentration whereby Siemens AG

For the Commission

Neelie KROES
Member of the Commission

(1) Not yet published in the Official Journal.