IP/01/823
Brussels, 12 Juin 2001
Commission approves Continental’s takeover of
Daimler Chrysler subsidiary Temic
The Commission has cleared the acquisition of Daimler Chrysler’s subsidiary
Temic by the German company Continental AG. Among its other products
Continental makes braking and air-suspension systems for motor cars.
Temic produces the electronics needed for these products. The vertical
integration which would take place as a result to the takeover would not put
Continental in a dominant position.
For most of the relevant products the market leader is Bosch, which is vertically
integrated to a very great extent. Temic did not in the past supply its parent company
Daimler Chrysler, and operated largely as a supplier to Continental. Even if the
relevant markets are taken to be confined to the EEA, therefore, the takeover would
not create or strengthen a dominant position as a result of which effective
competition would be significantly impeded in the common market or in a substantial
part of it.
The Commission has accordingly declared the transaction compatible with the
common market.