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EU Approves Porsche's VW Takeover Plans
Deal would not stifle competition, antitrust commission says.
By . Agence France-Presse
July 23, 2008 -- The European Commission approved on Wednesday German sports car maker Porsche's planned takeover of Volkswagen, judging that the deal would not stifle competition.
"After examining the operation, the commission concluded that the transaction would not significantly impede effective competition," Europe's top antitrust watchdog said in a statement.
Porsche has said since early March that it planned to take control of VW, Europe's biggest automaker, with a majority stake, and has been waiting for the approval of various competition authorities.
"The commission's examination of the transaction showed that horizontal overlaps between Volkswagen and Porsche are limited and that, for all car segments concerned, Porsche will continue to face several strong, effective competitors," the EU regulator said.
"The commission also considered potential effects of the merger on the markets for the manufacture and supply of spare parts and on distribution markets but concluded that the transaction would not lead to any negative effects on these markets," it added.
Copyright Agence France-Presse, 2008
