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Electronics Production | September 16, 2008

EU Commission approves acquisition of EPCOS by TDK

The European Commission has cleared under the EU Merger Regulation the proposed acquisition of EPCOS, a German producer of electronic components, by the Japanese company TDK.
After examination, the Commission concluded that the transaction would not significantly impede effective competition in the European Economic Area (EEA) or any substantial part of it.

TDK is active in the development, production and sale of electronic materials and components as well as recording media, including videotapes, CD-Rs, minidisks and DVDs. EPCOS is active in the development, production and sale of electronic components, in particular passive and electromechanical components.

The Commission examined the impact of the proposed merger in the area of passive components, where the parties have overlapping activities in a number of product segments. Passive components are devices that offer resistance to an electric current and transform or store electrical energy. They are present in virtually all electrical and electronic equipment.

The Commission’s examination of the proposed transaction showed that the horizontal overlaps between the activities of TDK and EPCOS are limited, and that the combined firm would in any event continue to face several strong, effective competitors with significant market shares for each of these components or possible sub-segments. The Commission's investigation also showed that switching suppliers is a realistic alternative and that customers' multi-sourcing policy for passive components would not be affected as they would continue to have access to a number of alternative suppliers.

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