{"id":18735,"date":"2024-10-08T15:59:47","date_gmt":"2024-10-08T14:59:47","guid":{"rendered":"https:\/\/telecomkh.info\/?p=18735"},"modified":"2024-10-08T15:59:47","modified_gmt":"2024-10-08T14:59:47","slug":"the-european-commission-approves-acquisition-of-kinetics-by-exyte","status":"publish","type":"post","link":"https:\/\/telecomkh.info\/?p=18735","title":{"rendered":"The European Commission approves acquisition of Kinetics by Exyte"},"content":{"rendered":"

The European Commission has approved unconditionally, under the EU Merger Regulation, the proposed acquisition of Kinetics Holding GmbH (\u2018Kinetics’) by Exyte GmbH (\u2018Exyte’). The Commission concluded that the transaction would not raise competition concerns in the European Economic Area (\u2018EEA’)<\/strong><\/p>\n

Exyte is active globally in the design, engineering, procurement, and construction for high-tech industries such as semiconductors. Kinetics provides design and installation services as well as certain equipment for production plants and laboratories.<\/p>\n

The Commission’s investigation<\/strong>
\nThe Commission investigated the impact of the transaction in the EEA markets for services and products for semiconductor and other advanced technology manufacturing facilities.
\nThe Commission found that, by acquiring Kinetics, Exyte would expand its presence and gain scale across the EEA for services and products for semiconductor manufacturers, which include: (i) general contractor services; (ii) certain installation services; (iii) certain equipment, in particular gas and chemical supply systems (\u2018Media Supply Systems’); and (iv) technical facility management services.
\nExyte’s and Kinetics’ activities on these markets give rise to moderate horizontal overlaps in the markets for the provision of installation services and Media Supply Systems for semiconductor facilities in the EEA, leading to an unproblematic combined position.
\nThe transaction also gives rise to vertical and conglomerate links. The Commission’s investigation notably confirmed that Exyte has a strong market position as a general contractor for semiconductor facilities in the EEA. Nevertheless, the Commission found that the transaction, as notified, would not significantly reduce competition in the relevant markets.<\/p>\n

In particular, the Commission found that:
\n\u2022 The products and services offered by Kinetics in the markets for installation services, Media Supply Systems and\/or technical facility management services are not unique and are offered by a number of alternative market players.
\n\u2022 Competing providers of installation services and Media Supply Systems do not depend on Exyte as their customer.
\n\u2022 End-customers active in the semiconductor manufacturing industry would continue to exert significant countervailing buyer power.
\n\u2022 Technical facility management services are, if at all, sub-contracted following the completion of a manufacturing facility and therefore cannot be bundled with Exyte’s general contractor services.<\/p>\n

The Commission therefore concluded that the proposed merger would not raise competition concerns in any of the markets examined in the EEA or any substantial part of it and cleared the transaction unconditionally.<\/p>\n

Companies and products<\/strong>
\nExyte, headquartered in Germany, is active globally in the design, engineering, procurement, and construction for high-tech industries, i.e., for the semiconductor, batteries, pharmaceutical, biotechnology and data centre sectors.
\nKinetics, headquartered in Germany, is active in the design and installation services for process, mechanical, plumbing and Heating, Ventilation and Air Conditioning (\u2018HVAC’) related solutions in the construction of production plants and laboratories, as well as the supply of Media Supply Systems.<\/p>\n

Merger control and procedure<\/strong>
\nThe transaction was notified to the Commission on 26 August 2024.
\nThe Commission has the duty to assess mergers and acquisitions involving companies with a turnover above certain thresholds (see Article 1 of the EU Merger Regulation) and to prevent concentrations that would significantly impede effective competition in the EEA or any substantial part of it.
\nThe vast majority of notified mergers do not pose competition problems and are cleared after a routine review. From the moment a transaction is notified, the Commission generally has 25 working days to decide whether to grant approval (Phase I) or to start an in-depth investigation (Phase II).<\/p>\n

Above, image credited to Kinetics<\/em><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

The European Commission has approved unconditionally, under the EU Merger Regulation, the proposed acquisition of Kinetics Holding GmbH (\u2018Kinetics’) by Exyte GmbH (\u2018Exyte’). The Commission concluded that the transaction would not raise competition concerns in the European Economic Area (\u2018EEA’) Exyte is active globally in the design, engineering, procurement, and construction for high-tech industries such … <\/p>\n

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