The European Commission (EC) has granted regulatory clearance to the take over of Austrian gas engine and generator maker Jenbacher by the General Electric Company (GE).
The Commission concluded that the acquisition, which has an impact on the market for reciprocating engines used for power generation, does not raise any competition concerns in Europe.
Jenbacher’s reciprocating engines burn either liquid fuels or gas and are normally used for mechanical applications and electrical power generation. According to the Commission, GE is not active in this business although it does develop, produce and market other types of turbines.
The Commission’s market investigation showed that reciprocating engines can generally be distinguished from other forms of power generation by reason of their technical characteristics, cost and efficiency.
Consequently, the Commission could find no overlaps between the activities of GE and Jenbacher.
Even if the relevant market would be considered wider, also comprising small gas turbines, the market share added by GE would be below 5%. As GE has no activities upstream or downstream of reciprocating engines, the operation does not raise antitrust concerns.
In the Commission’s opinion, Jenbacher holds an important, but not a leading position in the market for reciprocating engines. Although GE is one of the leading players for power generation equipment other than reciprocating engines, it is mainly focused on large heavy-duty turbines with a power output far exceeding that of reciprocating engines.
The Commission concluded that GE would not be able to leverage this position as customers for both products differ widely.