Mergers: Commission approves acquisition of Delphi Steering Business

Publication date: 04 May 2009

The European Commission has cleared under the EU Merger Regulation the proposed acquisition of Delphi Steering Business, a US manufacturer of steering products for motor vehicles, by the US car manufacturer General Motors (GM). The Commission concluded that the transaction would not significantly impede effective competition within the European Economic Area (EEA) or a substantial part of it

GM manufactures and sells cars and commercial vehicles worldwide. Delphi Steering Business, belonging to US car components supplier Delphi Corporation, is globally active in the manufacture and sale of steering products and half-shaft components for motor vehicles. Delphi is a major supplier of GM’s vehicle manufacturing activities.

The Commission's examination of the transaction showed that for all vehicle components which GM gets from Delphi Steering Business, the merged entity would continue to face several strong, effective competitors with significant market shares.

The Commission's investigation also found that the merged entity would not have an incentive to close off competing car manufacturers access to Delphi Steering Business products, given that, inter alia, these vehicle components represent a modest fraction of the cost of a car.

The Commission therefore concluded that the proposed transaction does not raise competition concerns.

More information on the case will be available at:

http://ec.europa.eu/competition/mergers/cases/index/m110.html#m_5500

Source: Europa Press Room