Commission clears acquisition of Tognum and Bergen by Daimler and Rolls-Royce

25th Jul 2011 17:22

Car manufacturers Daimler and Rolls-Royce have been given the go-ahead by the European Commission to proceed with their proposed takeover of Tognum AG and Bergen.Norway based Bergen is already controlled by UK company Rolls-Royce, but seeks to undertake this joint venture with German car manufacturer Daimler.The EC concluded that the merged entity will continue to face several strong and effective competitors in the markets. Bergen and Tognum, a leading German engine supplier, were found to have a slight overlap in their activities, with a crossover noted by the EC in the production and sale of diesel reciprocating engines for marine applications and for gas and diesel gensets used for power generation. The Commission also assessed the vertical relationship between fuel injection systems produced by Tognum through its wholly-owned subsidiary, L'Orange, and Bergen's diesel reciprocating engines for marine application, that use the former as an input. It concluded that there would be no risk of input foreclosure post-merger as there are alternative and competing sources of supply for fuel injection systems.The Commission decided that the proposed concentration would not significantly impede effective competition in the European Economic Area or any substantial part of it. NR