The Swedish Competition Authority (“SCA”) opened an in-depth investigation into the proposed acquisition of Prokey AB by Assa Sverige AB, both of Sweden. Assa Sverige AB is part of the international Assa ABLOY group that is active in developing, manufacturing and marketing different security products and door solutions. Prokey AB is a wholesaler of security products. In December 2012, the SCA ordered that the acquisition was to be subject to notification to the authority even though the relevant turnover thresholds were not met. There are both horizontal and vertical relationships between the parties to the acquisition as regards the market for sales of locks and security products and the market for manufacturing of the same products. The SCA’s initial market investigation raised concerns that the proposed acquisition would bring together the two main competitors in the wholesale market for security products, as there are indications that Prokey AB and Copiax AB, a wholly-owned subsidiary of Assa Sverige AB and a wholesaler of security products, are each other’s closest competitors. Further, interested parties have presented concerns that post-transaction locksmiths would have only one available wholesaler and that the combined entity would have the power and incentive to offer worse conditions for competing manufacturers which sell their products through Copiax AB and Prokey AB. The SCA now has three months, until 15 July 2013, to make a final decision on whether the acquisition would significantly impede effective competition in the Swedish market or any substantial part thereof. Source: The Swedish Competition Authority decision no. 126/2013, 15/4/2013 and The Swedish Competition Authority press release 16/4/2013