IP/04/1535
Brussels, 23rd December 2004
Mergers: Commission
SNECMA by SAGEM
approves
acquisition
of
The European Commission has cleared under the EU Merger Regulation the
proposed acquisition of SNECMA Group (“Snecma”), the French aerospace
components company, by SAGEM S.A. (“Sagem”). After examining the
operation carefully, the Commission concluded that the transaction would
not significantly impede effective competition in the EEA or any substantial
part of it and has therefore approved the concentration.
Sagem is active in telecommunications and electronics for defence and security.
Snecma produces and markets aircraft and rocket engines and other equipment in
the field of civil and military aeronautics and the space industry. The merger will
create a major industrial and technology group that is active on the global stage in
the civil aviation, defence, space, telecommunications and the electronics sectors.
The Commission’s examination of the deal showed that the horizontal overlaps
between the activities of Sagem and Snecma are limited and that, for all products
concerned, the combined firm will continue to face several strong, effective
competitors with significant market shares.
The Commission also studied the new entity’s enlarged product range in the
aeronautics and space industries, and concluded that there would be no risk of any
of the markets concerned being closed off, as there are alternative and competing
sources of supply. It also took the view that the proposed transaction would not
materially affect the choice of purchasers, that is to say airframe and space platform
manufacturers, defence contractors or aerospace equipment manufacturers.