Commission clears acquisition of FTE by Valeo, subject to conditions

Background and further information:

The Commission assessed the impact of the proposed transaction on a number of markets where the activities of FTE and Valeo overlap, in particular in the supply of passive hydraulic actuatormodules and its individual components. The investigation confirmed that the proposed transaction, as originally notified, raised competition concerns, due to several factors, including the very high market shares for the merged entity in these markets, the difficulties for customers to switch to other suppliers and the lack of sufficient buyer power to offset the merged entity's market power post-transaction.

To address the Commission's concerns, Valeo offered to divest its entire passive hydraulic actuator business with the exception of its Korean activities. Valeo has proposed the Italian car part supplier Raicam as a purchaser for the divested assets. The Commission found that the proposed remedies address its concerns given that they would ensure that the number of suppliers in the markets affected would remain the same. Today's decision also approves Raicam as the buyer of the assets divested by Valeo.

The transaction was notified to the European Commission on 7 September 2017. It was originally notified to the Commission on 10 October 2016 but the notifying party withdrew the notification on 29 November 2016.

The European Commission approved on 13 October 2017 under the EU Merger Regulation the proposed acquisition of FTE by Valeo, both automotive equipment suppliers. The decision is conditional on the divestment of Valeo's passive hydraulic actuators business to the Italian car parts supplier Raicam.