CELEX: 31996M0762
Language: en
Date: 1996-09-03 00:00:00
Title: Commission Decision of 03/09/1996 declaring a concentration to be compatible with the common market (Case No IV/M.762 - CEGELEC / AEG II) according to Council Regulation (EEC) No 4064/89 (Only the English text is authentic)

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31996M0762

Commission Decision of 03/09/1996 declaring a concentration to be compatible with the common market (Case No IV/M.762 - CEGELEC / AEG II) according to Council Regulation (EEC) No 4064/89 (Only the English text is authentic)  

Official Journal C 308 , 17/10/1996 P. 0003

 COMMISSION DECISION of 03/09/1996 declaring a concentration to be  compatible with the common market (Case No IV/M.762 - CEGELEC / AEG II)  according to Council Regulation (EEC) No 4064/89  (Only the English text is authentic) The paper version of the decision is available through the sales offices  of the Office of Official Publications of the European Communities. PUBLIC VERSION MERGER PROCEDURE ARTICLE 6(1)(b) DECISION To the notifying parties Dear Sirs, Subject :<ind> Case No IV/M.762  CEGELEC/AEG II <ind> <ind> Notification of 30.07.1996 pursuant to Article 4 ofCouncil  Regulation (EEC) No 4064/89 1.<ind> On 30.07.1996, the Commission received a notification of a  proposed concentration pursuant to Article 4 of Council Regulation (EEC)  No 4064/89 by which the undertaking CEGELEC S.A. belonging to the group  Alcatel Alsthom acquires within the meaning of Article 3(1)b of the  Council Regulation control of the whole of AEG AAT, belonging to AEG,  which is a 96% majorityowned subsidiary of DaimlerBenz, by way of purchase  of shares.  2.<ind> After examination of the notification, the Commission has  concluded that the notified operation falls within the scope of Council  Regulation (EEC) No 4064/89 and does not raise serious doubts as to its  compatibility with the common market and with the functioning of the EEA  Agreement. I.<tab> THE PARTIES' ACTIVITIES AND THE OPERATION 3.<ind> The business activities of the undertakings concerned are : <ind> <ind> for CEGELEC : contracting, engineering and systems integration  activities in the field of electric power and controlled systems,  industrial process control; <ind> <ind> for AEG AAT : factory automation and goods distribution,  process engineering and environmental systems, infrastructure and  integrated services, software products and systems.  4.<ind> The businesses being acquired include factory automation and goods  distribution systems and projects, industrial process engineering and  control, and environmental systems based on DCS platforms., which are  businesses in which both parties participate. II.<ind> COMMUNITY DIMENSION  5.<ind> Undertakings Alcatel Alsthom and AEG AAT have a combined aggregate  worldwide turnover in excess of ECU 5,000 million. Each of them has a  Communitywide turnover in excess of ECU 250 million, but they do not  achieve more than twothirds of their aggregate Communitywide turnover  within one and the same Member State. The notified operation therefore has  a Community dimension, but does not constitute a cooperation case under  the EEA Agreement, pursuant to Article 57 of that Agreement. III.<tab>  COMPATIBILITY WITH THE COMMON MARKET <tab> A.<ind> Relevant product markets 6.<ind> The notifying party states that there are relevant product markets  for factory automation and goods distribution systems and projects; and  also, for industrial process engineering and control, and environmental  systems based on DCS platforms.  However, it is not necessary to further  delineate the relevant product markets because, in all alternative market  definitions considered, effective competition would not be significantly  impeded in the EEA or any substantial part of that area. <ind> B.<ind> Relevant geographic market 7.<ind> The notifying party states that the relevant geographic market is  national, even to a certain extent, regional (i.e., two or more Member  States, or crossborder areas in the EEA). However, it is not necessary to  further delineate the relevant geographic markets because, in all  alternative geographic market definitions considered, effective  competition would not be significantly impeded  in the EEA or any  substantial part of that area. <tab> C.<ind> Assessment  8.<ind> Whatever the geographic dimension of the product markets, there  are no affected markets in the meaning of Form CO. The combined market  shares brought about the concentration in either product market will not  amount to 15%, as measured within the EEA or EU as a whole or in any  individual Member State.    9.<ind> In view of these market positions, it appears that the notified  operation will have an insignificant impact on competition in the EEA.  Consequently, the proposed concentration does not create or strengthen a  dominant position as a result of which effective competition would be  significantly impeded in the EEA or any substantial part of that area. IV.<ind> ANCILLARY RESTRICTIONS 10.<ind> The Master Agreement binds Daimler Benz not to reenter the fields  in which AEG AAT was active for five years. Because this clause is  directly related and necessary to the implementation of the proposed  concentration, it is covered by the present decision. V.<ind> CONCLUSION 11.<ind> For the above reasons, the Commission has decided not to oppose  the notified operation and to declare it compatible with the common market  and with the functioning of the EEA Agreement. Thisdecision is adopted in  application of Article 6(1)(b) of Council Regulation (EEC) No 4064/89.  For the Commission,