BELGIUM: EC approves Getrag takeover proposal by GKN

By Simon Warburton | 29 September 2011

GKN has been cleared by the European Commission (EC) under the EU Merger Regulation for the proposed acquisition of the all-wheel-drive (AWD) components business of German automotive group Getrag.

The Commission found that in all the markets concerned, the merged entity will continue to face several strong, effective competitors and customers will therefore continue to have access to a sufficient number of suppliers.

The EC examined in particular the horizontal overlaps in the parties' activities in the area of AWD components and found the proposed transaction would result in only limited overlaps

The Commission, therefore, concluded the transaction, which was announced on 28 July and notified to the Commission for regulatory clearance on 24 August, would not significantly impede effective competition in the European Economic Area or any substantial part of it.

The two businesses to be acquired by GKN, Getrag All Wheel Drive and Getrag Corporation, are subsidiaries of GETRAG Getriebe-und Zahnradfabrik Hermann-Hagenmeyer & Cie.

Getrag All Wheel Drive, which is based in Sweden, manufactures and supplies certain AWD components to OEMs located in the EEA and has a legacy (non-core) business supplying chassis components to Volvo Cars.

Getrag Corporation, which is based in the US, manufactures and supplies certain AWD components to OEMs in North America and Asia.