European Commission Approves VB Autobatterie Acquisition

The European Commission has reported its approval of German company VB Autobatterie GmbH’s proposed acquisition of Italy’s FIAMM group’s automotive starter battery business, subject to the German company allaying competitor’s concerns about the impact such a deal may have.

These concerns are related to the FIAMM group’s business in Italy, Austria, the Czech Republic and Slovakia, as the company holds a strong market position there. A question mark hangs over the impact the planned transaction will have in these markets. VB Autobatterie has offered to divest some of its manufacturing capacity and some key FIAMM brands relevant to the replacement part markets in these countries.

The Commission’s initial market investigation in December stated that the proposed acquisition would raise ‘serious competition concerns’, but its latest position is that, subject to a number of conditions, the takeover would not have any significant hindering effect upon competition within European markets.