Competition approval has been granted by the European Commission to the planned acquisition by US-based automotive systems and components manufacturer Johnson Controls (JCI) of German car seat manufacturer CRH.
Brussels imposed no conditions on its permission, having concluded in an investigation there were sufficiently strong rival autoparts suppliers to provide strong competition to an expanded JCI.
Go deeper with GlobalData
“The parties will neither have the incentive nor the ability to close out non-integrated competitors from access to metal structures and mechanisms for car seats,” noted a commission communiqué. It added car manufacturers had significant power over car seat manufacturers, choosing suppliers and setting prices.
“These have an interest in keeping a sufficient number of potential suppliers…” noted the bureaucrats.
This is despite significant overlaps in JCI and CRH’s business. Both make car seat structures and related components such as seat adjusters and head rests, although JCI also makes car seat components, complete seats, and components such as door panels or headliners. JCI also supplies intermediate auto manufacturer suppliers as well as carmakers themselves. The commission concluded “their combined market shares will remain relatively moderate”.
This deal follows Johnson Controls’ December acquisition of German seat recliner specialist Keiper and the automotive sport and specialty seat business of US based Recaro.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalData
