A European Commission investigation of the planned takeover of Austria’s largest industrial group VA Tech by Siemens has found that the proposed acquisition may create significant competition problems given the fact that the two companies’ overlap in many industrial markets.
Both Siemens and VA Tech are active worldwide in a range of similar businesses. Their products are used in power plants, high-voltage transmission lines, locomotives, steel plants and large buildings.
With regard to some products, the Commission says that both firms are not only direct competitors, but are also among the leading companies in Europe and worldwide.
The Commission has now started another investigation to carry out an in-depth assessment of the proposed transaction, and it has four months to investigate whether the proposed acquisition would significantly lessen effective competition in the European Union and the EFTA markets.
On the tenth of this month, more than 90% of VA Tech shares were tendered to Siemens for 65 Euros per share.
But until approval from the EC, as well as that from its US and Canadian counterparts, no attempt can be taken to integrate VA Tech into the Siemens Group.