The European Commission has cleared under the Merger Regulation the proposed acquisition of the French company Valeo SA’s Comfort Access Mechanisms business (“CAM”) by U-Shin Ltd. of Japan. CAM manufactures and distributes products that facilitate vehicle access and prevent unauthorised vehicle use, such as handles or locks. The Commission concluded that the proposed acquisition did not raise competition concerns because it would not significantly alter the market structure.
U-Shin is active globally in the design, development, manufacture and sale of system devices and control machines for the automotive sector, industrial machinery and home security units. CAM is a business unit of Valeo, a company active in the manufacture and distribution of automotive parts. It is part of Valeo’s Comfort and Driving Assistance business group.
The merging parties’ activities overlap in the sale and manufacture of several automotive components. The Commission examined the potential effects of the proposed acquisition as regards the manufacture and sale of latches, handles, locks, mechanical steering column locks, electronic steering column locks and locksets. The Commission’s investigation confirmed that the proposed acquisition did not raise competition concerns because the merged entity would continue to face competition from a number of strong competitors, while its customers are mainly large sophisticated original equipment manufacturers (OEM) that make purchases through highly competitive bidding processes.
The Commission therefore concluded that the transaction would not significantly impede effective competition in the European Economic Area (EEA) or any substantial part of it. The transaction was notified to the Commission on 21 December 2012.
