The European Commission has given its conditional approval to the €2.7 billion acquisition of Eaton's hydraulics business by Danfoss after the Danish company agreed to divest some of its businesses.
Danfoss
Following its initial investigation, the Commission found that a merger between the two companies would have been damaging to competition, leading to reduced supplier choice and higher prices.
To address these concerns, Danfoss offered to divest its facilities in Wroclaw, Poland, Parchim, Germany, and Hopkinsville, US, as well as a number of technology transfers.
Executive Vice-President Margrethe Vestager, in charge of competition policy, said: ”Danfoss and Eaton are both leading players in hydraulic components globally. Manufacturers of agricultural and construction machinery depend on these components for manufacturing innovative and price competitive products.
"Thanks to the commitments offered by the two companies, these customers will continue to benefit from competitive prices and have a choice of innovative products.”
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