Magna gets green light from competition watchdog on $2.5B Getrag deal
by Canadian Manufacturing.com Staff
Parts maker's big move into EU approved by European Commission
Magna said earlier this year it expects to close the deal by the end of 2015.
Focussing on the expansion of its powertrain business, Magna struck a deal to buy the 80-year-old company in July of this year.
“Getrag is an excellent fit with [our] strategy,” Magna CEO, Don Walker, said previously. “Getrag is a technology leader in a product area that we believe is well-positioned to benefit from industry trends that are driving increased vehicle fuel-efficiency and reduced emissions.”
Though the EU Commission found some of the companies’ activities overlap, these conflicts were limited.
“The Commission’s investigation found that the overlaps were limited and that a number of strong players would remain in the market after the merger,” the report said. “Furthermore, OEM customers have the possibility to retain in-house manufacturing capabilities for at least one sub-system of eDrive systems, in order to maintain their bargaining power vis-à-vis suppliers.”
Concluding that the deal would not raise any competition concerns, the Commission gave Magna’s major buy its seal of approval.
The Aurora, Ont.-based company expects the deal to close by the end of the year.
