1
 
 
Home News & Events COMPETITION LAW NEWS: Acquisition in the Car Seat Market of CRH by Johnson Controls Inc. EU Approved

COMPETITION LAW NEWS: Acquisition in the Car Seat Market of CRH by Johnson Controls Inc. EU Approved

Sunday, 06 February 2011 13:52

The European Commission has on 14 January, 2011the acquisition of the German-based CRH Group of Companies (CRH) which primarily manufactures metal structures and mechanisms for car seats, by US-based Johnson Controls Inc. (JCI), a supplier of automotive seat components and systems. The proposed acquisition was notified to the Commission on 1 December 2010 for regulatory clearance under the EU Merger Regulations.

The companies competed in the markets for car seat structures and related components such as seat adjusters and head rests ... however, the Commission’s investigation concluded that the relevant market was highly competitive with other alternative suppliers on the relevant market with available access to metal structures as well as mechanism for car seats, and in particular having taken into consideration the purchasing power of car manufacturing companies who tend to keep a sufficient number of potential suppliers for car seats and normally determine the prices thereof.

Hence, since the combined market share of CRH and JCI was not deemed to raise any concern and would not significantly reduce competition in the European Economic Area (EEA) or any substantial part of it, the Commission gave its green light for the planned acquisition.

Source and for further information