Electronics Production | April 04, 2012
EC approves Deutsch / TE Connectivity deal
The European Commission has cleared the proposed acquisition of the French company Deutsch by the US company TE Connectivity.
Both are active in the production of electronic connectors. The Commission's investigation confirmed that the merged entity would continue to face a number of credible competitors and customers would still have sufficient alternative suppliers in all markets concerned. The Commission examined the competitive effects of the proposed acquisition, notably in the markets for electronic connectors for industrial applications, non-automotive transportation including commercial vehicles, and aerospace and defence, where both companies are active. The market investigation showed that in these markets the parties are not each other's closest competitors as they operate on different ends of the product spectrum - Deutsch produces connectors for more harsh environments requiring a higher degree of strengthening to resist wear or abuse ("ruggedisation"). Moreover, TE and Deutsch face various other sophisticated competitors who can expand their production to cover the demand for electronic connectors for various end-uses. The Commission therefore concluded that the transaction would not significantly impede effective competition in the European Economic Area (EEA) or any substantial part of it. The proposed transaction was notified to the Commission on 27 February 2012.
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