European Commission (EC) authorities have unconditionally approved the proposed acquisition of WABCO by ZF through the EU Merger Regulation.
The Commission concluded the transaction would raise no competition concerns in the European Economic Area.
During its investigation, the Commission received feedback from a large number of customers and competitors and found the transaction is unlikely to hinder effective competition in the markets for the following products:
- Transmission systems: Wabco provides AMT-controllers, clutch actuators and clutch servos as inputs to transmission systems and ZF purchases or manufactures such inputs internally. Given there are other actual or potential alternative sources of supply at both levels of the market, the Commission found the transaction does not give rise to competition concerns
- Clutches for air compressors: Wabco manufactures air compressors and ZF produces clutches used in air compressors. Based on an analysis of specific supply and sourcing relationships and dynamics on these markets, the Commission found the transaction does not give rise to competition concerns
- Control levelling valves for cabin air suspension systems: Wabco sells control levelling valves directly to truck manufacturers. ZF sells cabin suspension systems to truck manufacturers without the control levelling valve. The Commission found no competition concerns given alternative suppliers of control levelling valves and air suspension systems exist in the market
- Automated driver assistance solutions: ZF provides cameras and radars needed for ADAS functions such as lane departure warning or automatic emergency braking. ZF sells these products to truck manufacturers or companies such as Wabco who then incorporates these in their ADAS solutions. The ADAS sphere is developing and will gradually move towards automated driving. There are many companies active in this area and the Commission considers the transaction will not prevent competitors to ZF and Wabco from developing ADAS solutions and offering these in the market
The Commission therefore concluded the transaction would raise no competition concerns, as ZF will continue to face effective competition after the transaction on the relevant markets and cleared the case unconditionally.
“ZF and Wabco are both manufacturers of various commercial vehicle components, in particular for medium and heavy commercial vehicles,” noted an EC statement.
“The companies’ product portfolios are largely complementary in the MHCV market.
“ZF’s focus is on steering, chassis and driveline products such as transmission systems, for both cars and commercial vehicles, while Wabco’s focus is on braking and active safety technologies for commercial vehicles.”