The European Commission has decided to approve an operation by which New Holland N.V. (Fiat group) will acquire sole control over Orenstein & Koppel (Krupp group). New Holland is specialised in machines for agriculture and construction and Orenstein & Koppel manufactures only heavy construction machinery. With the exception of Italy, this transaction will not lead to the creation or reinforcement of a dominant position on the market.

New Holland (NH) belonging to the Fiat group manufactures machines for agriculture and construction. It is a full liner manufacturer which means that it produces the whole range of machinery needed in this sector. NH is active worldwide, but more significative in Europe and North America. Fiat's 1997 global turnover ECU 46,000 million.

Orenstein & Koppel (O&K) controlled by the group Krupp manufactures only construction machinery in Europe, and in particular heavy equipment. Its 1997 turnover ECU 370 million.

The transaction is essentially aimed at reinforcing NH's position in Germany where it has been traditionally marginal. It also strengthens NH's position in the segment of heavy excavators. Concerning market shares, the parties' activities overlap essentially in Italy in the segments of excavators with 41.1% (NH 39.2%, O&K 1.9%), Caterpillar 25.8%, Komatsu 13.5% and in the levelling machines' market with 62.7% (NH 60.8%,O&K 1.8%) Caterpillar 33.7%, Liebherr 4.8%.

From a competition point of view, there are no special concerns arising from this operation, the new entity will face strong competition. The Commission has accordingly declared the operation compatible with the common market.

Source:
RAPID
23 / 12 /1998