The European Commission has cleared under the EU Merger Regulation the proposed creation of a joint venture between SGL Carbon SE of Germany and Brembo S.p.A of Italy to develop and produce carbonceramic brake discs and systems. After examining the operation, the Commission concluded that the transaction would not significantly impede effective competition in the EEA or any substantial part of it.
SGL Carbon produces carbon-based products, including carbon fibres and brake discs. Brembo manufactures brake products including brake discs and callipers for cars, motorbikes, commercial vehicles and racing cars. The joint venture would be active in the development of carbon-ceramic brake systems and the sale of carbonceramic brake discs for cars and light commercial vehicles. In particular, it would combine Brembo's ceramic brake systems business and SGL Carbon's brakes business, exploit resulting synergies, increase the capacity and production volume of the existing plants and aim to create and operate facilities for the mass production and sale of carbon-ceramic brake discs.
The Commission’s examination of the proposed transaction showed that for the products concerned, the joint venture would continue to face effective competition from high performance cast iron brake discs, whereas carbon-ceramic brake discs constitute a very moderate proportion of the overall high performance market