The Commission came to a conclusion that although ABB and GEIS are global providers of electrical products and systems, the transaction would not lead to competition concerns in the concerned markets in the European Economic Area (EEA).
In a statement, the Commission, said: “Both ABB and GEIS are active in the design, manufacture and sale of low voltage and medium voltage products for industrial, commercial and residential applications, as well as of secured power protection systems and transformers.
“However, their respective geographic areas of activity are complementary, with ABB being stronger in Europe and GEIS in the US.”
For overlapping markets in the EEA, the Commission said that the deal will not impact competition as the ABB-GEIS combination does not majorly increase concentration across various product categories.
It added that the combined company will continue to face effective competition from multiple large-scale rivals and specialized or local suppliers.
Further, it added that products in the overlapping markets are generally homogeneous and therefore interchangeable between rival brands.
The Commission said that it has got broad confirmation from customers that even after the completion of the transaction, there will be adequate alternative sources of supply in the EEA.
According to the Commission, in markets where ABB and GEIS are active at various levels of the supply chain, it found that the combined company would not be able to foreclose competitors.
It was in last September that the Switzerland-based power grids manufacturer ABB had entered into an agreement to acquire GEIS in a move to expand its access to the North American market.
Upon closing of the deal, ABB intends to bring GEIS under its Electrification Products (EP) division to create a distinctive global portfolio and a comprehensive product offering for customers in North American and other parts of the world.
The portfolio of EP comprises low- and medium-voltage products and solutions ranging from substation to socket to enable a smarter, more reliable flow of electricity.
