Mergers: Commission approves Assa Abloy’s acquisition of Agta Record, subject to conditions

assa abloy

(Credit: Unsplash)

This article is brought to you in association with the European Commission.

The European Commission has approved, under the EU Merger Regulation, the proposed acquisition of Agta Record by Assa Abloy. The approval is conditional on the implementation of a remedy package by Assa Abloy.

Assa Abloy and Agta Record are two of the main Original Equipment Manufacturers (OEMs) of automatic pedestrian doors (including automatic swing, sliding and revolving doors) in the European Economic Area (EEA), and significant OEMs of industrial doors (including high-speed doors), for which they also provide after-sales services. Assa Abloy is also an important supplier of Access Control Systems (ACS) and related components in the EEA.

The Commission’s investigation

The Commission had concerns that the proposed transaction, as originally notified, would have significantly reduced competition in:

  • the supply of different types of automatic pedestrian doors in various Member States, including Austria, Czechia, Finland, France, Hungary, Iceland, the Netherlands, Slovenia and the United Kingdom, and
  • the supply of industrial high-speed doors in France.

These concerns also extended to the provision of after-sales services, including maintenance, repair and overhaul of the products in question.

The merged entity would have been either the largest supplier or the second largest supplier of those products in the relevant countries, with limited constraints from competitors. The Commission was therefore concerned that the proposed acquisition would harm competition and lead to increased prices for intermediary and final customers.

The Commission also investigated issues raised by third parties in relation to the supply of ACS and related components, an area in which Agta Record is not directly active, as well as the supply of locks and other components.

The proposed remedies

To address the Commission’s concerns, Assa Abloy offered the following commitments:

  • The divestment to a competing OEM of Agta Record’s automatic pedestrian door business in the Netherlands, Austria, Hungary and Slovenia and of Assa Abloy’s automatic pedestrian business in the United Kingdom and France. The divestment package also includes a licence to market Agta Record’s automatic pedestrian door products and/or use of Agta Record’s brands in Czechia, Finland and Iceland and an overall license to access and use Agta Record’s technology in connection with the manufacturing of automatic pedestrian doors.
  • The divestment of Agta Record’s industrial high-speed door business located in France.

In addition, Assa Abloy has committed to supply spare parts and related technical information and servicing tools on fair and reasonable terms for a period of at least ten years in a range of EEA countries, including by means of an online marketplace.

These commitments eliminate the Commission’s concerns in relation to the proposed transaction. In particular, they remove the overlaps between the companies’ activities in each of the national markets for which the Commission had concerns.

Therefore, the Commission concluded that the proposed transaction, as modified by the commitments, would no longer raise competition concerns. The decision is conditional upon full compliance with the commitments.

Companies and products

Assa Abloy, based in Sweden, manufactures and sells a broad range of access solutions, including automatic pedestrian doors, automatic industrial doors, locks, sensors, as well as access control systems and related components. Assa Abloy also provides after-sales services for its products.

Agta Record, based in Switzerland, manufactures, supplies and services automatic pedestrian doors, with limited activities in industrial doors. Assa Abloy currently owns a non-controlling 38.75% interest in Agta Record.

Merger control rules and procedures

The transaction was notified to the Commission on 9 January 2020.

The Commission has the duty to assess mergers and acquisitions involving companies with a turnover above certain thresholds (see Article 1 of the Merger Regulation) and to prevent concentrations that would significantly impede effective competition in the EEA or any substantial part of it.

The 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 a total of 25 working days to decide whether to grant approval (Phase I) or to start an in-depth investigation (Phase II). This deadline is extended to 35 working days in cases where remedies are submitted by the parties, such as in this case.

More information will be available on the Commission’s competition website, and in the Commission’s public case register under the case number M.9408.


the sting Milestone

Featured Stings

Can we feed everyone without unleashing disaster? Read on

These campaigners want to give a quarter of the UK back to nature

How to build a more resilient and inclusive global system

Stopping antimicrobial resistance would cost just USD 2 per person a year

Refugees in Greece: MEPs demand solidarity, warn about impact of health crisis

230 Junior Entrepreneurs and over 70 guests attended the International Congress on “Entrepreneurial Skills for Youth”

Coronavirus COVID-19 wipes $50 billion off global exports in February alone, as IMF pledges support for vulnerable nations

UN chief urges peaceful, free and fair elections in Cameroon

New Africa-Caribbean-Pacific/EU Partnership: moving forward towards a new partnership fit for the future

MEPs strongly welcome the Global Compact on Migration

‘Agile’, multilateral response vital to combat terrorism – UN chief Guterres

vSudan: UN chief calls for ‘positive momentum’ as civilian rule talks stall between military and opposition

Madagascar: UN chief commends leaders, State institutions following ‘historic milestone’ election

Finnish Prime Minister calls for a more united EU of concrete actions

Boom in Artificial Intelligence patents, points to ‘quantum leap’ in tech: UN report

Security spillovers from Trump’s trade wars: China, Germany prepare for global disorder

Tackling water scarcity: 4 ways to pull H20 out of thin air

New York’s rooftop farms provide fresh local produce – and help stop a sewage problem

EU-Belarus: MEPs back agreements on readmission and visa facilitation

Somalia: worst harvest since 2011, with more than 2 million expected to go hungry

World Food Day: here’s what the UN is doing to fix ‘intolerable’ wrong of hunger

MWC 2016 LIVE: Ingenu steps up efforts to build LPWA networks across the globe

These Harvard scientists think we’ll have to socially distance until 2022

Inequality in the delivery of health services

Digital business is Europe’s best hope to get back to growth

9 ways to strengthen the global economic response to COVID-19

‘Exercise restraint’ Guterres urges Sri Lankans, as political crisis deepens

ECB’s unconventional monetary measures give first tangible results

A Sting Exclusive: “Leading by example! EU must push for UN deal to avoid dangerous climate change”, European Parliament Vice-President Ulrike Lunacek cries out from Brussels

Mali: UN chief calls for calm as clashes leave over 20 dead in Mopti

Finnish Presidency outlines priorities to EP committees

What is behind the wide reach of  fake news about Coronavirus?

Supporting the recovery: MEPs adopt budget priorities for 2021

This is how music festivals are tackling plastic waste

Economic growth ‘exceeds expectations’ but trade tensions are rising: UN report

Third Facebook-Cambridge Analytica hearing: data breach prevention and cures

The world’s most expensive places to own a home

Could switching between summer and winter time end in 2021?

MEPs want to fund crucial areas to stimulate European growth

TTIP’s 11th round major takeaways and the usual “leaked” document

UN chief appeals for calm as Mali presidential election draws to a close

This is our chance to completely redefine the meaning of work

Joint UN, OSCE engagement can address crisis in Ukraine, other ‘dark spots of conflict’ in Europe

Germany to re-invent its security position in Europe and a chaotic world

Here’s how data can shine a light on financial crime

UN chief condemns attack targeting international forces in northern Mali

Encouraging progress made in 2018, in ‘zero tolerance’ effort to end sexual exploitation and abuse across UN

Senior UN children’s advocate says they ‘should never be targeted by violence’

Stop illegal trade in cats and dogs, say MEPs

One year on: EU-Canada trade agreement delivers positive results

UN chief urges restraint following reported Saudi-led assault in Yemen

Miguel Arias Cañete European Commission

EU should invest more in climate and not sit back on its laurels and watch

South Sudanese refugees need $2.7 billion, as safe return remains elusive

EU: Divided they stand on immigration and Trump hurricanes

Women in Iceland have walked out of work to dispute the gender pay gap

Central Africans ‘need our help now’: UN’s deputy relief chief

Here’s why infrastructure will make or break our response to climate change

The European Brain Drain: a truth or a myth?

Deal on tightening the rules to stop terrorists from using homemade explosives

3 ways business leaders can build digital trust

3 charts that show how attitudes to climate science vary around the world

Why a healthy planet and a healthy economy go hand-in-hand

Here are 3 ways venture capital can fund a better future

Aid funding for Occupied Palestinian Territories at ‘all-time low’

More Stings?


Speak your Mind Here

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s