The European Commission has approved under the EU Merger Regulation the proposed acquisition of certain businesses of the German car manufacturer supplier Karmann by Volkswagen.
The Commission concluded that the proposed transaction would not significantly impede competition in the European Economic Area (EEA) or any substantial part of it.
Volkswagen is active worldwide in the development, production and sale of passenger cars, light commercial vehicles, car components as well as the manufacturing of buses and commercial vehicles. Its main brands are Volkswagen, Audi, Bentley, Bugatti, Lamborghini, Porsche, Scania, SEAT, Skoda and Volkswagen Nutzfahrzeuge. VW is controlled by Porsche Automobil Holding SE.
Karmann is currently under insolvency administration. Under the proposed transaction, Volkswagen would acquire the following Karman businesses: car and components development, contract manufacturing, plant engineering and the development and production of equipments and tools.
As Karmann acts as a supplier to the car industry, the transaction mainly leads to vertical links. Given the presence of other considerable suppliers and the moderate market share of Karmann, the Commission concluded that car manufacturers will continue to have sufficient alternative suppliers after the transaction.
The proposed transaction was notified to the Commission on 21 October 2010.
