The European Commission has cleared under the EU Merger Regulation the proposed acquisition of the cooling fans and electric motor drives business of Continental AG by Brose Fahrzeugteile GmbH & Co. KG, both of Germany. After examining the operation, the Commission concluded that the transaction would not significantly impede effective competition in the European Economic Area (EEA) or any substantial part of it.

Brose is a supplier of door and seat systems for vehicles as well as of components for such systems. Continental acquired most of the targeted business in November 2007 from Siemens VDO.

By the proposed transaction, Brose would enlarge its activities as a supplier to the automotive industry and integrate its current supplier of electric motors for vehicle windows.

The Commission's investigation revealed that, despite Brose's relatively high market share for electric window motors and door systems at the EEA level, the merged entity would not be in a position to close off access to the market by competitors. Competitors that are not already vertically integrated would still be able to source electric motors from alternative suppliers or turn to in-house production. In addition, suppliers of door systems may be limited in the choice of their supplier of electric motors to be integrated into the door systems by their customers, the vehicle manufacturers, who often specify the origin of such key components. [10 March 2008]