European Commission (EC) officials have cleared under the EU Merger Regulation, the creation of a joint venture between Volkswagen Financial Services (VWFS) and the Belgian company D’Ieteren for the provision of financial services related to the sale of Volkswagen group vehicles on the Belgian market.
The Commission concluded the creation of the joint venture, to be known as Volkswagen D’Ieteren Finance (VDFin), would not raise competition concerns because the proposed transaction will not significantly alter the market structures and the merged entity will face competition from other players.
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The proposed transaction’s effects on the markets were examined for the supply of operating and financial leasing products in Belgium as VDFin’s activities would overlap with those of another company, LeasePlan Corporation, which is jointly-controlled by Volkswagen.
The Commission found a sufficient number of players were active on the markets concerned to maintain effective competition.
It also examined the vertical relationship between Volkswagen’s activities as a vehicle manufacturer and the activities of D’Ieteren and VDFin on the downstream markets for the distribution and sale of these vehicles.
The Commission concluded the proposed transaction would not lead to a significant change in the structure of these markets in Belgium and that no competition concerns would arise.
The body therefore said the proposed transaction would not significantly impede effective competition in the European Economic Area or any substantial part of it.
VWFS is responsible for coordinating the worldwide financial services activities of Volkswagen and specialises in the provision of financial services mainly relating to the distribution and financing of vehicles of the Volkswagen group brands.
D’Ieteren distributes Volkswagen, Audi, Skoda, Seat, Porsche, Bentley, Lamborghini, Bugatti and Yamaha vehicles, spare parts and after-sales services for the same brands across Belgium. It is also active in Belgium in the sale of used vehicles.
D’Ieteren also controls Belron, the worldwide leader in vehicle glass repair and replacement, which trades under different brands including Carglass, Autoglass and Safelite Auto Glass.
VDFin will provide a full range of financial services related to the sale of Volkswagen group vehicles on the Belgian market.
