Press Release: Mergers: Commission approves the EuroSystems transaction between BAE Systems and Finmeccanica in the defence sector

The European Commission on 15 March 2005 granted clearance under the EU Merger Regulation to the proposed acquisition of the avionics and communication business of BAE Systems, the UK defence contractor, by Italian defence company Finmeccanica, and the de-merger of their AMS joint venture. These concentrations were part of the so-called 'EuroSystems' transaction that the parties concluded in January 2005. The European Commission considered that these transactions did not raise competition concerns in Europe since overlaps were limited and other large and capable players competed for these military equipments. It therefore concluded that the operation would not significantly impede effective competition in the European Economic Area (EEA) or any substantial part of it.