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

Brain drain 2017: why do medical students need to emigrate to become doctors in 2017?

‘Internal security’ or how to compromise citizens’ rights and also make huge profits

How can entrepreneurship tackle the migration crisis in the EU?

Vegetarianism is good for the economy too

Misinformation and growing distrust on vaccines, ‘dangerous as a disease’ says UNICEF chief

We have the tools to beat climate change. Now we need to legislate

Latest tragedy in the Mediterranean claims over 100 lives – UN refugee agency

European Youth Forum on Summit on Jobs and Growth

Why is Grexit again in the news? Who is to pay for Eurozone’s banking problems?

EU’s tougher privacy rules: WhatsApp and Facebook set to be soon aligned with telcos

To achieve the Great Reset, we will need more than just the actions of the powerful

Migration policy affects attractiveness of OECD countries to international talent

6 charts that show how Japan’s economy stacks up as it enters a new era

MEPs want to boost energy storage in the EU to help spur decarbonisation

DR Congo President and UN chief meet at a ‘historic moment’ for democracy in the country

EU budget: Commission proposes €1.26 billion to reinforce the European Solidarity Corps

Strengthen inclusion, participation of people with autism to ‘achieve their full potential’ says UN chief

Italian banks: It’s Rome’s turn to confront Berlin’s aggressiveness

Draghi strives to control the unruly exploitation of financial markets by banking leviathans

Eurozone: How safe are our deposits? Which banks will survive?

Europe enters uncharted waters with Kiev-Moscow standoff

Stakeholder capitalism is urgently needed – and the COVID-19 crisis shows us why

Growing up near green space is good for your mental health as an adult

Here’s how data could make our cities safer

New York and London mayors call on cities to divest from fossil fuels

‘Climate change is the battle of my life’, UN chief tells students living on the frontline in Fiji

UN chief ‘deeply saddened’ by Ethiopia plane crash which killed 157, including at least 21 UN workers

What little Cameron got in Brussels seems enough to keep Britain in the EU

Thailand gave healthcare to its entire population and the results were dramatic

Finland should do more to improve job prospects of low-skilled youth

Syria: Civilians caught in crossfire, UN refugee chief urges Jordan to open its border

5 steps businesses can take to protect air quality after COVID-19

One third of poorer countries face both undernutrition and obesity: WHO report

This is why retail is such a sore point in India-US trade relations

What matters most to young Europeans?

Only the Americans are unhappy with the ceasefire agreement in eastern Ukraine

Greece begins a new chapter following the conclusion of its stability support programme

ECB’s new money bonanza handed out to help the real economy or create new bubbles?

Digitalization is changing banking – These 3 trends will help shape its future

G20 LIVE: G20 Antalya Summit in Numbers, 15-16 November 2015

Amidst ‘high political tension’, UN chief appeals to G20 leaders for stronger commitment to climate action, economic cooperation

Air pollution, the ‘silent killer’ that claims seven million lives a year: rights council hears

How banking with blockchain can stamp out corruption and increase financial inclusion

Does the Erasmus program really contribute to the construction of a solid EU identity?

Why CEOs need to become activists in sustainability

The European Commission to stop Buffering

Tools of asset development: Renewable Energy Projects case

The blackened white coat of the doctors

UN says ‘many humanitarian achievements’, one year after ouster of ISIL from Mosul

Brexit must not put UK university research at risk

Volkswagen getting away with it in Europe

Energy: EU funding for priority projects should reflect 2050 climate objectives

Healthy habits to help you cope with health anxiety

‘End the ongoing atrocities’ against people with albinism in Malawi, say UN rights experts

How building renovations can speed up the electric vehicle revolution

The relation of deforestation and respiratory diseases

Deutsche Bank chased away from US, threatened with more fines

What does strategy have to do with a platform approach?

International Criminal Court acquits former president Gbagbo of war crimes in Côte d’Ivoire

How emerging markets will shape Africa in 2020

More Stings?

Advertising

Speak your Mind Here

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

WordPress.com Logo

You are commenting using your WordPress.com 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