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European Commission clears Safran / Zodiac merger
The European Commission has approved the proposed acquisition of Zodiac Aerospace by Safran. The Commission concluded that the transaction would raise no competition concerns.
Commissioner Margrethe Vestager, in charge of competition policy, said: "Both Safran and Zodiac are significant French actors in the aeronautics markets but competition in these markets in Europe will remain strong. We can green light this transaction and the emergence of a strong European player with our EU merger rules."
Both Safran and Zodiac are active worldwide in the aerospace equipment industry. The Commission carried out a broad investigation of the markets where the companies are active.
Both companies supply aircraft electrical systems. However, the Commission found no serious competition concerns because the increase in market shares resulting from the transaction is very limited, and the merged entity will continue to face strong competition from other established suppliers.
On markets on which the merging companies are active at different stages of the supply chain, for example as suppliers of landing gears and wiring systems or related components, the Commission found that the merged entity would not have the ability and/or incentive to foreclose third parties, notably because alternative suppliers and customers would in any event remain available.
