Commission opens in-depth investigation into Knorr-Bremse’s proposed takeover of brakes manufacturer Haldex

Background and further information:

Knorr-Bremse and Haldex were seen as two of the world's largest manufacturers of commercial vehicle brake systems and components, with a particularly significant presence in the European Economic Area.

Knorr-Bremse announced its public offer for Haldex on 5 September 2016 and eventually outbid the competing offer of ZF Friedrichshafen, another car parts manufacturer. The transaction was notified to the Commission on 1 June 2017. On 30 June, Knorr-Bremse submitted commitments to address the Commission's concerns. However, the Commission considered these commitments insufficient to clearly dismiss its serious doubts as to the transaction's compatibility with the EU Merger Regulation.

The Commission's initial investigation showed that the proposed merger would likely remove a significant competitor from an already very concentrated sector.

The European Commission decided on 24 July 2017 to open an in-depth investigation to assess the proposed takeover of Haldex by Knorr-Bremse under the EU Merger Regulation.

There were concerns that the arrangement may reduce competition for brake systems and related components for commercial vehicles across the European Union.

European Commission: DG Competition: Cases: M.8222 [Knorr-Bremse & Haldex] http://ec.europa.eu/competition/elojade/isef/case_details.cfm?proc_code=2_M_8222

Reuters, 24.07.17: EU regulators to investigate Knorr-Bremse's bid for Haldex https://www.reuters.com/article/us-haldex-ab-m-a-knorr-bremse-eu-idUSKBN1A91XR

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