The European Commission has cleared under the EU Merger Regulation the proposed acquisition of Volkswagen of Germany by the German company Porsche. After examining the operation, the Commission concluded that the transaction would not significantly impede effective competition in the European Economic Area (EEA) or any substantial part of it.
Porsche develops, manufactures, markets and sells passenger cars, in particular sports cars and sports utility vehicles (SUVs). Porsche Holding is mainly active in the wholesale and retail distribution of passenger cars and spare parts in several countries in the EEA. Besides distributing passenger cars of the Porsche brand, it has also been active in the wholesale and retail distribution of Volkswagen's car brands in a number of countries for several years. Porsche Holding is also active in the wholesale and retail distribution of other manufacturers' car brands in several Member States.
Volkswagen, one of the largest car manufacturers worldwide, develops, manufactures, markets and sells passenger cars and light commercial vehicles, including spare parts and accessories. The company also distributes vehicles. The Volkswagen Group includes the vehicle brands Volkswagen, Audi, Seat, Skoda, Bentley, Lamborghini and Bugatti.
Porsche and Volkswagen have been cooperating for many years, for instance in the development of sports utility vehicles (SUVs). Porsche is already the largest shareholder in Volkswagen. In June 2008, Porsche entered into a share purchase agreement to acquire an additional share of 4.92% of the voting capital in Volkswagen. After the transaction, Porsche will be in a position to exercise de facto control over Volkswagen.
While Volkswagen is active within a wide range of different types of passenger cars and commercial vehicles, Porsche is focusing on sports cars and SUVs. The Commission's examination of the transaction showed that horizontal overlaps between Volkswagen and Porsche are limited and that, for all car segments concerned, Porsche will continue to face several strong, effective competitors with significant market shares. The Commission also considered potential effects of the merger on the markets for the manufacture and supply of spare parts and on distribution markets but concluded that the transaction would not lead to any negative effects on these markets.
More information on the case will be available at:
