EU Commission approves Freudenberg’s joint venture
On May 14 the EU Commission cleared under the EU Merger Regulation the proposed creation of Trelleborg Vibracoustic, a joint venture between Freudenberg (D) and Trelleborg (S) and combining their automotive anti-vibration systems activities
Freudenberg develops and produces seals, anti-vibration systems, filters, nonwovens, release agents, specialty lubricants and mechatronics products and more than one third of its sales derive from the automotive industry.
Trelleborg is engaged in the manufacturing of anti-vibration systems for automotive and industrial applications, products and solutions for noise supression in vehicles, wheel systems, industrial fluid systems and engineered solutions based on polymer materials.
The joint venture will provide development, production and sale of anti-vibration systems for automobiles on a worldwide basis. According to the EU Commission the activities of the two companies overlap in the supply of anti-vibration systems for passenger cars and commercial vehicles particularly in relation to engine mounts, chassis mounts and torsional vibration dampers (TVD) but after the completion of the transaction the joint venture will be subject of constraints by several competitors in each of these markets. Also customers generally select suppliers by tender procedures and also this aspect allows the market to be competitive and that is why the EU Commission approved the joint venture.