The European Commission has approved, under the EU Merger Regulation, the acquisition of sole control over SITECH Sp. z o. o. of Poland by Brose Fahrzeugteile SE & Co. KG (‘Brose’) of Germany.
SITECH is a wholly owned subsidiary of Volkswagen AG (‘VW’) and produces complete vehicle seats, metal seat structures and seat structure components. Brose supplies automotive components and manufactures mechatronic systems for vehicle doors, seat structures, electric motors and electronics, including steering, braking, gearbox and motor cooling. Brose and Sitech will combine their activities in the area of seats and seat structures manufactured for VW.
VW will hold a non-controlling share in the merged entity. The Commission concluded that the proposed acquisition would raise no competition concerns, given that the merging companies are not close competitors and that, following the transaction, a number of alternative strong players would remain in all relevant markets.
The Commission has also concluded that VW’s non-controlling shareholding would not have any adverse effects on competition due to the limited structural changes in the relevant markets. The transaction was examined under the normal merger review procedure. More information is available on the Commission’s competition website.