CELEX: 32014M7083
Language: en
Date: 2014-04-24 00:00:00
Title: Commission Decision of 24/04/2014 declaring a concentration to be compatible with the common market (Case No COMP/M.7083 - JOHN WOOD GROUP / SIEMENS / JV) according to Council Regulation (EC) No 139/2004 (Only the English text is authentic)

|[pic]                             |EUROPEAN COMMISSION                                                                                      |

Brussels, 24.4.2014
C(2014) 2873 final

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|To the notifying parties:                                              |                                                                       |
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Dear Sir/Madam,

Subject:    Case M.7083 - JOHN WOOD GROUP/ SIEMENS/ JV
Commission decision pursuant to Article 6(1)(b) of Council Regulation No 139/2004[1]

    1) On 17 March 2014, the European Commission received a notification[2] of  a  proposed  concentration  pursuant  to  Article  4  of  Council
       Regulation (EC) No 139/2004 by which John Wood Group PLC (‘WG’ of USA) and  Siemens  Aktiengesellschaft  (‘Siemens’  of  Germany)  acquire
       within the meaning of Article 3(1)(b) of the Merger Regulation joint control by way of purchase of  shares  in  a  newly  created  company
       constituting a joint venture (‘JV’) (WG and Siemens are designated hereinafter as the ‘Parties’).

       THE PARTIES

    2) WG is an international energy services company. It provides a  range  of  engineering,  production  support,  maintenance  management  and
       industrial gas turbine overhaul and repair services to the oil and gas and power generation industry on a worldwide basis. WG, through its
       GTS business (‘GTS’) operates as an independent service provider (‘ISP’) in the servicing of rotating  equipment,  among  others  gas  and
       steam turbines.

    3) Siemens is a global engineering and electronics conglomerate active throughout a number of sectors, including the energy  sector.  Amongst
       other activities, Siemens is an original equipment manufacturer (‘OEM’) for rotating equipment and provides aftermarket services.  Siemens
       provides services to its own manufactured equipment  through  its  business  unit  Siemens  Energy  Services.  In  relation  to  equipment
       manufactured by other OEM Siemens provides services through its business unit TurboCare acting as an ISP.

       THE OPERATION

    4) By means of the proposed transaction, the Parties will form a JV that will provide services mainly for mature technology gas turbines. The
       JV will form a global ISP for rotating equipment in the power generation and oil and gas industries. Shares in the JV will be held 51%  by
       WG and 49% by Siemens.

    5) WG[3] will contribute to the JV almost the entirety of its gas turbine service business. GTS which is contributed to  the  JV  provides  a
       full range of services, including the supply of some spare parts, in relation to mature technology gas turbines.  The  business  which  is
       contributed to the JV by WG is also active, however to a more limited extent, in providing services  in  relation  to  rotating  equipment
       other than gas turbines, including steam turbines, generators, compressors and pumps.

    6) Siemens[4] will contribute to the JV its TurboCare business. TurboCare[5] provides a wide range of services, primarily in relation to non-
       Siemens manufactured turbines, as well as to certain mature technology, out-of-production Siemens units (i.e. Fiat  and  Westinghouse  gas
       turbines which Siemens has acquired) and exceptionally in relation to mature technology Siemens turbines. TurboCare broadly  services  the
       following rotating equipment: gas turbines, steam turbines, generators and compressors.

       THE CONCENTRATION

       Joint control

    7) The Parties will have joint control over the JV as a result of the fact that a majority of the board of the JV, including at least one  WG
       and one Siemens appointed director is required in relation to strategic decisions as: (i) approval of the initial and subsequent  business
       plans; (ii) the removal and appointment of senior executives (including the Chief Executive Officer,  the  Chief  Financial  Officer,  the
       deputy Chief Executive Officer and the Vice President for Finance and Integration); and (iii) approval of the operating budget.

    8) The transaction therefore leads to an acquisition of joint control within the meaning of Article 3(1)(b) of the Merger Regulation.

       Full Functionality

    9) The JV will have its own dedicated management and resources, as well as the capabilities to perform all the activities on the market.  The
       JV will be self-financing and perform activities on a lasting basis. For an  initial  period,  the  Parties  will  provide  administrative
       assistance to the JV. The JV will rely only to a minimal extent on purchases from the Parties. Regarding sales,  the  JV  is  expected  to
       achieve most of its revenues from sales to third parties.

   10) The transaction therefore constitutes a concentration within the meaning of Article 3 (4) of the Merger Regulation.

       EU DIMENSION

   11) The undertakings concerned have a combined aggregate world-wide turnover of more than EUR 5 000 million[6] (Siemens: EUR 78  296  million;
       WG: EUR 5 309 million). Each of them has an EU-wide turnover in excess of EUR 250 million (Siemens: EUR […] million; WG: EUR […] million),
       but they do not achieve more than two-thirds of their aggregate EU-wide turnover within one and the same Member State.

   12) The notified operation therefore has an EU dimension according to Article 1(2) of the Merger Regulation.

       COMPETITIVE ASSESSMENT

   13) The transaction concerns the aftermarket services for gas and steam turbines.

   14) The turbines services mainly consist of three ‘core’ services: (i)  field  services,  (ii)  component  repair  and  (iii)  the  supply  of
       replacement parts. Without these services gas turbines cannot remain in operation once they reach a certain age. All significant  ISP  and
       all OEM are able to offer these services. In addition to ‘core’ services companies also  might  offer  ancillary  services  (e.g.  control
       systems, monitoring, diagnostics etc.). Customers usually purchase a complete package of services from a single service provider.  If  the
       service provider does not offer the service in-house it outsources the services that it cannot offer.

1 Product market definition

1 Gas turbine services

   15) According to the Parties the aftermarket for gas turbines services includes mature technology gas turbines serviced by OEM and ISP. Mature
       technology turbines are older than approximately 8-16 years and the warranty period for these turbines has usually  expired.  The  Parties
       also provide information on a narrower market which is further subdivided according to OEM and turbine capacity.

   16) The Commission has previously in Siemens/Sequa[7] considered several markets for servicing gas turbines. It took as its starting  point  a
       putative market for the provision of services to all power generation plants, except for nuclear plants. The  Commission  also  considered
       whether it would be appropriate to define the market more narrowly by reference to gas turbines (as opposed  to,  e.g.,  steam  turbines),
       and/or by reference to mature technology turbines. The  market  investigation  supported  a  distinction  between  non-mature  and  mature
       technology turbines. However, the exact market definition was left open as concerns did not arise on any basis.

   17) In TPM/Wood Group[8], the Commission took as its starting point a putative market for the provision of overhaul  and  repair  services  in
       relation to industrial gas turbines. The Commission also considered whether it would be appropriate to define the market more narrowly  by
       reference to the turbine manufacturer, that is the OEM. The market investigation indicated a broader market  definition  that  is  without
       distinguishing by OEM. Ultimately, the exact market definition was left open as concerns did not arise on either basis.

1 Distinction by non-mature and mature technology

   18) The Parties submit that services for non-mature and mature technology gas turbines should be considered  as  separate  markets.  When  OEM
       first develop and start to supply a new model of a turbine (non-mature technology), all the know-how  is  proprietary  to  OEM  and  often
       protected by the intellectual property rights. No competition is taking place at this stage because gas turbines  cannot  be  serviced  by
       service providers other than OEM. As the turbine reaches its maturity (approx. 8-16 years) other  service  providers  start  entering  the
       market as all the necessary know-how is no longer exclusive to OEM. Upon expiry of a warranty or a  first  long  term  services  agreement
       (LTSA) with OEM, customers start tendering aftermarket services for their gas turbines.

   19) The Commission investigation in Siemens/ Sequa[9] provided support for a distinction between non-mature and  mature  technology  turbines.
       However, the exact definition of the product market was left open.

   20) The current market investigation supports the position of the Parties and confirms the findings in the previous Commission  decision.  The
       majority of the respondents confirmed that ISP only service mature gas turbines.

   21) The Commission therefore considers that services for mature technology gas turbines constitute a distinct market which  does  not  include
       services for non-mature technology turbines.

2 Distinction by OEM and ISP

   22) The Parties submit that it is inappropriate to segment the market according to different service providers - OEM and ISP. According to the
       Parties there is a wide range of providers offering mature gas turbines services. OEM provide  in  addition  to  services  for  their  own
       turbines also services to turbines produced by other OEM. ISP service various producers of mature technology gas turbines.  ISP  therefore
       compete actively among each other and with OEM.

   23) The market investigation confirmed that services rendered by OEM and ISP are comparable in terms of quality, even  though  ISP  can  offer
       sometimes more competitive prices. The investigation also confirmed that there is interchangeability between services provided by OEM  and
       ISP. The majority of the respondents indicated that they would switch from OEM to ISP in case the former were to increase  prices  by  5%-
       10%. Customers also confirmed that they switched from OEM to ISP in the past.

   24) The Commission therefore considers that services rendered by OEM and ISP are part of the same market.

3 Distinction by OEM

   25) The Parties submit that it is inappropriate to segment the market according to OEM. According  to  them,  a  high  degree  of  supply-side
       substitutability exists between different OEM services, as the provision of services in relation  to  mature  gas  turbines  by  different
       producers is based on similar know-how and expertise. ISP have a possibility to source non-original spare parts or refurbished parts  from
       the third parties.

   26) The Commission's previous decision in TPM/Wood Group[10] considered that the market could be considered wider than according  to  the  OEM
       (TPM in that case) for the following reasons: i) overhaul and repairing services relating to industrial gas turbines are based on  similar
       know-how and ii) TPM original replacement parts are available on the market to any independent repairer. However, the exact definition  of
       the product market was left open.

   27) The Commission's market investigation supports the Parties' arguments. The vast majority of the competitors stated that they will be  able
       to switch from servicing gas turbines produced by one OEM to gas turbines produced by another OEM.

   28) As the present concentration does not give rise to competition concerns even if the product market were to be defined by  OEM,  the  exact
       product market definition can be left open.

4 Distinction by gas turbine capacity

   29) Gas turbines can be distinguished according to turbine capacity, namely, small (with a capacity  below  15MW),  medium  (with  a  capacity
       between 15MW and 60MW) and large (with a capacity above 60MW). The Parties claim that a hypothetical segmentation by power category  would
       be inappropriate as, from a supply side, there is significant substitutability. In practice all  significant  ISP  and  OEM  are  able  to
       service different categories of gas turbines. The cost and time associated with switching between different power categories are modest.

   30) In the past, the Commission  has  not  distinguished  between  services  for  gas  turbines  with  different  capacities.[11]  The  market
       investigation in this case showed that the competitors consider services to different capacity gas turbines comparable because  –  despite
       the difference in capacity – they are based on a similar technology.

   31) The majority of the respondents to the market investigation confirmed that they would  be  able  to  switch  between  servicing  different
       capacity turbines. This applies in all directions, hence from servicing large and medium turbines to servicing small turbines and, even if
       to a lesser extent, the other way around.

   32) This needs to be set against the average duration of the service agreements that customers conclude. Once the first LTSA has  expired  and
       upon maturity of the turbines, servicing of the turbines can be done following two different approaches: (i) by entering into a  new  long
       term service agreement either with the OEM or with an ISP or (ii) following a more transactional  approach.  OEM  customarily  prefer  the
       first approach, whilst ISP take both. The Notifying Parties have confirmed that as an OEM, Siemens renders its  services  to  all  of  its
       customers under LTSAs. This in turn concerns the vast majority of customers that use Siemens  turbines.  These  subsequent  LTSAs  usually
       cover […] maintenance cycles of the turbine and have an average duration of […]. Following the expiry of the first LTSA, the  majority  of
       services to gas turbines are rendered under subsequent LTSAs.

   33) The market investigation has confirmed that competitors that serve different capacity turbines can  switch  to  servicing  other  capacity
       turbines at limited cost and over a period of time that falls comfortably within the duration of a typical LTSA. Some competitors  confirm
       that this can even be done within a year. Hence, players active in different power categories are able to exert competition  once  a  LTSA
       expires and the customer demand is freed up to the market.

   34) Therefore, in the light of the existing supply side substitutability among the different power categories, the Commission takes  the  view
       that in this case a segmentation of the product market according to the power category of the gas turbines is inappropriate.

   35) In any event, even considering turbines of different capacity separately, the JV and  Siemens  will  at  the  very  least  face  potential
       competition from ISP and OEM currently servicing other power categories. Accordingly, the Commission follows  its  previous  practice  and
       does not distinguish between the servicing of gas turbines with different capacities. The narrowest possible market  that  the  Commission
       considers in this case is a market for the servicing of Siemens gas turbines.

           Conclusion

   36) On the basis of the above, the Commission concludes that a separate market should be considered for mature gas turbine services. As  under
       an alternative market definition considered with regard to a narrower segmentation by OEM the present concentration does not give rise  to
       serious doubts as to its compatibility with the internal market, the exact product market definition can be left open in this respect.

2 Steam turbine services

   37) According to the Parties, unlike gas turbines, the basic steam turbine technology has not changed materially in many years and, therefore,
       it is generally considered as mature, even though certain improvements are introduced from time to time in relation to other technological
       aspects to improve performance. For this reason, ISP can, and do in fact, compete to provide services immediately from the point  in  time
       at which the steam turbine is sold to a customer.

   38) The Commission has not previously investigated a separate market for steam turbine services.[12]

   39) The market investigation confirmed that the services for steam turbines are comparable regardless of  the  producer.  Steam  turbines  are
       considered a mature technology. Therefore know-how, spare parts, technology are more accessible to the services  providers.  Services  for
       steam turbines are provided by both OEM and ISP and they are comparable in terms of price and quality.

   40) However, as the present concentration does not give rise to competition concerns under any possible product market definition  considered,
       the exact market definition can be left open.

2 Geographic market

1 Gas turbine services

   41) The JV will provide services worldwide, operating facilities in North America, Europe and the Middle East.  The  Parties  argue  that  the
       relevant geographic market is at least EEA wide, and potentially worldwide.

   42) In its previous decisions, the Commission found that the gas turbines servicing market is at least European-wide  and  probably  worldwide
       but the exact geographic market definition was left open.[13]

   43) The market investigation revealed that service providers are mostly active in the EEA and worldwide. Customers indicated that they  mostly
       source gas turbine services at EEA level and worldwide. The majority of the competitors indicated that they provide services worldwide.

   44) The Commission considers that the market for servicing gas turbines is at least  EEA-wide  and  potentially  worldwide.  However,  as  the
       present concentration does not give rise to serious doubts as to  its  compatibility  with  the  internal  market  under  any  alternative
       geographic market definition considered (that is EEA-wide or worldwide), the exact geographic market definition can be left open.

2 Steam turbine services

   45) The JV will provide services worldwide, operating facilities in North America, Europe and the Middle East.  The  Parties  argue  that  the
       relevant geographic market is at least EEA-wide, and potentially worldwide. The Commission has not previously defined the geographic scope
       of the steam turbines services market.

   46) The market investigation revealed that services providers are mostly active at least in the EEA and worldwide.  Customers  indicated  that
       they mostly source gas turbine services at EEA level and worldwide. The majority of the competitors indicated that they  provide  services
       worldwide.

   47) The Commission considers that the market for servicing gas turbines is at least EEA and potentially worldwide.  However,  as  the  present
       concentration does not give rise to serious doubts as to its compatibility with the  internal  market  under  any  alternative  geographic
       market definition considered, the exact geographic market definition can be left open.

3 Assessment of services for all gas turbines without distinction by OEM

   48) On the basis of a market encompassing services for all mature gas turbines, irrespective of the producer and  turbine  power  category  at
       worldwide level, the combined market share of the JV ([0-5]%) and the Parties (Siemens [10-20]% and WG [0-5]%) would amount  to  [10-20]%.
       The largest player would remain GE with an estimated market share of [20-30]%. At EEA level, the estimated combined market share of the JV
       ([0-5]%) and the Parties (Siemens [10-20]% and WG [5-10]%) would be [20-30]%. GE would be  a  competitor  with  a  similar  size  with  an
       estimated share of [20-30] %. A large number of competitors (both OEM and ISP) are active on this market with market shares of up  to  [5-
       10]%.

   49) The Parties submitted that they and the businesses (TurboCare, GTS) contributed to the JV are not close competitors in terms of geographic
       presence, industries served, capabilities and approach to customers’ requirements (for example  GTS  has  tended  to  focus  on  [TYPE  OF
       CONTRACT] while TurboCare has tended to focus on providing services on [TYPE OF  CONTRACT]).

   50) The analysis of the bidding data provided by the Parties[14] indicates that the businesses contributed to the JV only  overlapped  in  the
       provision of services for GE and Siemens mature gas turbines. The analysis of the bidding data, thus, suggests that the  Parties  are  not
       close competitors on the overall market of services for mature gas turbines.

   51) The market investigation revealed the following:

       a. First, most of the customers did not regard GTS, Siemens TurboCare or Siemens Energy Services as indispensable  service  providers  for
          gas turbines. The majority of the customers indicated that none of the Parties are  aggressive  competitors  on  prices  or  commercial
          conditions.

       b. Second, most of the customers stated that during commercial negotiations they are able to switch to other services providers. This  was
          also confirmed by competitors. In addition, the majority of the customers indicated that  they  multi-source  services  from  different
          service providers.

       c. Finally, most of the respondents to the market investigation stated that the transaction will not have or will have very limited impact
          on the market in the EEA. Some of them indicated that the market is highly competitive, with numerous suppliers and market  entry.  The
          creation of a stronger ISP will increase competition as it would be easier to compete against strong OEMs.

   52) The Commission considers on the basis of above and in particular the Parties' market position in the market for all  mature  gas  turbines
       and the fact that the market investigation did not reveal specific competition concerns, that the proposed transaction does not give  rise
       to serious doubts as to its compatibility with the internal market on the overall market of services for mature gas turbines.

4 Assessment of services for gas turbines according to OEM

1 Assessment of services for Siemens gas turbines

   53) After the transaction the JV will provide services for all mature technology gas turbines, including Siemens turbines. Siemens will retain
       its own production gas turbine servicing business. Therefore the JV and Siemens will overlap in providing services for  mature  technology
       Siemens gas turbines.

   54) The Parties argue that a segmentation of the market according to OEM is inappropriate. Nevertheless, even on a  possible  narrower  market
       for the servicing of Siemens gas turbines, the concentration is unlikely to significantly impede effective competition for  the  following
       reasons.

   55) It is a general phenomenon that OEMs have a strong position in servicing their own gas turbines. In line with this trend,  Siemens  as  an
       OEM maintains a market share for servicing its own turbines [50-60]% globally and [70-80]  %  in  the  EEA.  GTS'  market  share  for  the
       servicing of Siemens gas turbines is [0-5]% at the worldwide level and [0-5]% at EEA level. For this reason, the  concentration  brings  a
       small increment to Siemens' market position.

   56) In a potential market of services for all Siemens turbines the JV has a limited market share and faces competition from a large number  of
       competitors (ISP and OEM). This includes Sulzer, PSM, Ansaldo Thomassen, Turbine Efficiency and Alstom.

   57) The market investigation furthermore confirmed the following:

       a. Customers running Siemens turbines did not perceive GTS as an indispensable or aggressive competitor on the market.

       b. Several customers confirmed that entry occurred in the past and the new entry is expected in the near future. Customers indicated  that
          entry occurred not only by ISPs but also by OEM that created own business divisions to service the gas turbines of other manufacturers.

       c. Customers confirmed that they have already switched service providers in the past. In addition, the  majority  of  customers  indicated
          that they are able to satisfy their needs from multi-sourcing. For their part, the majority of  competitors  indicated  that  they  can
          switch to servicing the gas turbines of other manufacturers in a short period of time.

       d. The majority of competitors stated the transaction would not have any impact on availability of Siemens gas turbines spare parts.

   58) In view of the above, the Commission considers that concerns raised by a limited number of third  parties  regarding  a  possible  Siemens
       spare parts foreclosure or reduction of competition for  Siemens  gas  turbines  are  not  founded.  The  Commission  considers  that  the
       concentration does not give rise to serious doubts as to its compatibility with the internal market on a market of services for mature gas
       turbines on which Siemens is the OEM.

2 Assessment of services for gas turbine of OEMs other than Siemens

   59) When considering a potential market segmented by OEM, the transaction is unlikely to raise competition concerns  for  mature  gas  turbine
       services markets by OEM other than Siemens.

   60) The market investigation confirmed that OEM retain a large share and up to 75-80% of the contracts for their own manufactured gas turbines
       after the expiry of the first LTSA or warranty period. The relevant OEM is therefore the strongest market player in the services  for  its
       own gas turbines. In these OEM markets (other than Siemens) the JV and the Parties will only have a minor market position and will not  be
       important competitors on these markets. A large number of ISP will also be active on these markets.

   61) The market structure in relation to other OEM manufactured turbines than Siemens turbines corresponds to the market structure for  Siemens
       turbines. The respective OEM retains the majority of the market for servicing of its  own  turbines  and  ISP  have  a  relatively  weaker
       position in relation to these turbines. The merger will therefore rather increase competition vis-à-vis the OEM as it creates  a  stronger
       ISP able to compete with the OEM.

   62) On the basis of the above, the Commission considers that the proposed transaction  does  not  give  rise  to  serious  doubts  as  to  its
       compatibility with the internal market on markets of services for mature gas turbines by OEM other than Siemens.

5 Assessment of services for steam turbines

   63) The JV's market share on overall market for steam turbine services would be worldwide [0-5] % and EEA [0-5] %.[15]

   64) Considering the overall market for steam turbine services in 2012, on a global basis Siemens (retained business) had a market share of [10-
       20] %. The combined market share of Siemens and the JV would therefore be below 20%. The market shares of GE and Alstom amount to [10-20]%
       and [5-10]% respectively. A large number of other competitors (MD&A, Elliott Group, ST Cotter, Power Plant Services, TurbinePROS, PEM, TGM
       and HTC (Harbin)) are active on this market. Furthermore, owners of rotating equipment sometimes choose to perform  certain  services  in-
       house.

   65) In view of the limited market position of the Parties and the JV the transaction does  therefore  not  raise  serious  doubts  as  to  its
       compatibility with the internal market on a worldwide market for steam turbine services.

   66) At EEA level, in 2012 Siemens (retained business) had a share of [10-20]%. The combined market share of Siemens and the JV would therefore
       be slightly above 20%. Alstom would remain the largest player with a share of [20-30]%. The remaining market is divided  between  a  large
       number of companies (GTS, TurboCare, MD&A, Elliott Group, ST Cotter, Power Plant Services, TurbinePROS, PEM, TGM and HTC  (Harbin)),  none
       of which individually held a market share above [5-10]%. Furthermore, some steam turbine owners perform services in-house.

   67) In view of the limited market position of the Parties and the JV the transaction does  therefore  not  raise  serious  doubts  as  to  its
       compatibility with the internal market on an EEA wide market for steam turbine services.

   68) If a narrower market is considered encompassing services provided in relation to Siemens steam turbines, in 2012 GTS'  market  share  only
       accounts for less than [0-5]% both globally and in the EEA. Siemens market shares for 2012 would be [60-70]% globally and [60-70]% in EEA.

   69) The transaction would lead to a minimal increment of less than [0-5]% on a worldwide and EEA-wide basis. The  transaction  will  therefore
       not have a competitive effect on services in relation to Siemens steam turbines.

   70) The market investigation also did not reveal any competition concerns  on  steam  turbine  services  market.  Respondents  to  the  market
       investigation confirmed that the transaction will not have impact on availability of steam turbine services or spare parts.

   71) On the basis of the above, the proposed transaction does not raise serious doubts as to its compatibility with the internal market on  the
       market of services for steam turbines including a market for Siemens steam turbines.

       CONCLUSION

   72) For the above reasons, the European Commission has decided not to oppose the notified operation and to  declare  it  compatible  with  the
       internal market and with the EEA Agreement. This decision is adopted in application of Article 6(1)(b) of the Merger Regulation.

For the Commission
(Signed)
Joaquín ALMUNIA
Vice-President

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[1]   OJ L 24, 29.1.2004, p. 1 ('the Merger Regulation'). With effect from 1 December 2009, the Treaty on the Functioning of the  European  Union
('TFEU') has introduced certain changes, such as the replacement of 'Community'  by  'Union'  and  'common  market'  by  'internal  market'.  The
terminology of the TFEU will be used throughout this decision.

[2]   Publication in the Official Journal of the European Union No C 87, 26.3.2014, p. 13.

[3]   WG will retain its interests in other JV, namely RWG, TCT and Sulzer Wood, among  which  only  RWG  and  TCT  operate  in  the  market  for
servicing mature technology gas turbines.

[4]   Siemens will retain its business providing gas turbine services in relation to all Siemens-manufactured gas turbines, including mature  and
non-mature technology turbines. Exceptionally the Siemens retained business may also provide services in relation to non-Siemens gas turbines.

[5]    TurboCare's  service  range  includes,  inter  alia,  redesigns,  upgrades  and  modifications,   replacement   components,   inspections,
refurbishments, repairs and overhauls, shop repairs and field services.
[6]   Turnover calculated in accordance with Article 5 of the Merger Regulation.

[7]   COMP/M.3084 - SIEMENS / SEQUA / JV, paras 12-15.

[8]   COMP/IV/M.1224 - TPM / WOOD GROUP, paras 7-8.

[9]   Case COMP/M.3084 – Siemens/Sequa/JV, paras 13-15.

[10]  COMP/IV/M.1224 - TPM / WOOD GROUP, paras 7-8.

[11]  Case COMP/M.3084 – Siemens/Sequa/JV and Case COMP/ IV/M.1224 – TPM/Wood Group.

[12]  In COMP/M.3084 – Siemens/Sequa/JV a potential narrower market concerning gas turbines as opposed to, e.g., steam turbines  was  considered;
however, the exact market definition was left open.

[13]  COMP/M.3084 – Siemens/Sequa/JV, para 17. COMP/IV/M.1224 - TPM / WOOD GROUP, para 9.

[14]  On the Commission's request, the Parties provided bidding data concerning tenders organized in the period 2011-2013 by customers  based  in
  EEA for servicing mature gas turbines produced by different OEM. The dataset only records tenders in which any of GTS, Siemens  and  TurboCare
  participated (tenders for which none of them submitted bids were not recorded). The dataset reports for each tender: the OEM producing the gas
  turbine; the technology type; the year and size of the gas turbine; whether any of GTS, Siemens and TurboCare participated in the tender;  the
  winner of the tender (for those not won by any of GTS, Siemens and TurboCare,  this  information  is  only  reported  when  available  to  the
  Parties); the customer name, country, date of the tender, date of delivering the service, value of the deal.

[15]  GTS' market share in the EEA equals to [0-5] % and worldwide to [0-5] %. TurboCare's market share in the EEA is [0-5] % and  Worldwide  [0-
5] %.

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 In the published version of this decision, some information has been omitted pursuant to Article 17(2) of Council Regulation (EC)  No  139/2004
 concerning non-disclosure of business secrets and other confidential information.  The  omissions  are  shown  thus  […].  Where  possible  the
 information omitted has been replaced by ranges of figures or a general description.

                                                                  PUBLIC VERSION

                                                                 MERGER PROCEDURE