BELGIUM: EC approves Keiper Recaro acquisition by Johnson Controls
Johnson Controls has received the green light from the European Commission (EC) to acquire the automotive business of Keiper Recaro Group.
The Group, which makes metal structures and mechanisms for car seats, was approved for takeover as the EC deemed both parties would continue to face competition from other suppliers
Brussels noted both companies' activities overlap in the downstream markets for car seat structures and the upstream markets for related mechanisms such as recliners and adjusters.
The Commission conducted a market investigation which covered car manufacturers, intermediate customers and actual as well as potential competitors.
While the parties would have high combined market shares in a number of car seat mechanisms such as recliners and height and tilt adjusters, the Commission's investigation in particular showed that they will continue to face competition from other suppliers and that car manufacturers have an important role in the selection of suppliers of seat structures and mechanisms for their car models or platforms and are therefore a constraining factor.
A statement from the EC said: "In addition, potential entry by non-European suppliers was taken into account in certain areas.
"The Commission therefore concluded that post-merger, these factors would constrain the parties' ability to raise prices or not provide inputs to customers and that the transaction would not significantly impede effective competition in the European Economic Area (EEA) or any substantial part of it."