Mergers: Commission opens in-depth investigation into Ålö's proposed takeover of MX

The European Commission has opened an in-depth investigation under the EU Merger Regulation into the planned acquisition of the French company Mailleux ("MX") by Ålö of Sweden. Both companies produce equipment for agricultural tractors. The Commission’s initial market investigation found that the proposed acquisition raises serious doubts as to its compatibility with the Single Market as regards front loaders for tractors, where the parties' activities overlap significantly. Front loaders are devices which can be attached to the front end of tractors to handle/lift various kinds of materials. The decision to open an in-depth inquiry does not prejudge the final result of the investigation. The Commission now has 90 working days, until 15th October 2008, to take a final decision on whether the concentration would significantly impede effective competition within the European Economic Area (EEA) or a substantial part of it.
Competition Commissioner Neelie Kroes said: "We must ensure that farmers, and ultimately all consumers of farm products, are not harmed by higher prices and less choice as a result of the proposed merger".

Ålö is a Swedish industrial group and the leading manufacturer of front loaders and implements for farm tractors. Ålö sells its products under the three brands Quicke, Trima and Veto across various European countries and in North America.

MX is a major French producer of equipment for tractors and particularly front loaders. It sells its loaders under the MX brand across Europe and under the Chillton brand in the UK.

The Commission's initial market investigation revealed that there was a risk that the merger would create a very strong player, combining two close competitors with high-reputed brands and a strong commercial foothold. Therefore the Commission has serious concerns that the proposed merger could create adverse effects on competition, leading to reduced choices for customers combined with higher prices.

More information on the case will be available at:

http://ec.europa.eu/comm/competition/mergers/cases/index/m99.html#m_4989

Published on: 2008-06-09

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