The European Commission has decided to approve an operation by which Pirelli SpA will acquire the energy cables business of the Siemens group. The sale package will consist of incorporated companies as well as business assets. If the product markets within the sector of energy cables were split into power cables (of the type used by electricity utilities and large installations, eg petrochemical installations) and general wiring, the only instance in which high market shares would have arisen was in Italy in relation to power cables, and then only if the power cables market were defined as national. However, evidence received from third parties supported the view that this market is in transition from national to European, in which case the size of the share at national level would not give rise to concerns. Furthermore, the majority of the production of this type of cable in Italy is bought by a single purchaser, who has considerable countervailing buyer power. Accordingly, the Commission has come to the view that no competition concerns arise, and that the concentration is compatible with the common market.

Pirelli S.p.A ("Pirelli") is the operating company of the Pirelli Group. It controls Pirelli Tyre Holding NV, which oversees the group's activities in the tyres market, and Pirelli Cavi e Sistemi S.p.A which is the group's operating company for its production activities in respect of cables and cable systems. Siemens AG is a publicly owned German industrial and electronics company, and the ultimate parent of the Siemens group of companies, active in sectors such as electrical engineering and electronics, communication, transportation, medical engineering, and others.

Source:
RAPID
02 / 10 /1998