August 31, 2010
EC approves Abu Dhabi Mar takeover of ThyssenKrupp shipyards
The European Commission has given the go ahead for deal that will see some of the most iconic names in German shipbuilding come under the control of a company based in the United Arab Emirates.
A proposed merger between Abu Dhabi Mar and ThyssenKrupp Marine System has been cleared by the \Commission under the EU Merger Regulations. The Commission concluded that the transaction would not significantly impede effective competition in the areas of civil and naval shipbuilding and repair in the European Economic Area (EEA) or any substantial part of it.
Abu Dhabi Mar (ADM) builds and repairs ships in Abu Dhabi (United Arab Emirates) as well as in its Nobiskrug shipyard in Rendsburg (Germany). ThyssenKrupp Marine Systems (TKMS), a subsidiary of ThyssenKrupp AG, is also active in the construction, repair and reconstruction of both civil and naval ships.
The operation involves two parts: First, ADM acquires TKMS' civil ship business, including the Blohm+Voss shipyard in Hamburg and the civil assets of the Howaldtswerke-Deutsche Werft shipyard in Kiel. Second, ADM and TKMS set up a jointly controlled joint venture in the naval surface ship business. The transaction does not include TKMS' submarine business.
The Commission says the concentration does not raise any competition concerns. It does not lead to any significant overlaps, the only relatively minor one being in the mega yacht market. In the markets for building naval ships, ADM is not active in Germany, Sweden and Greece, where TKMS traditionally has had strong positions.
The Commission says its market investigation has also confirmed that, "on the vertically affected markets for ship components, there is no risk of input foreclosure by TKMS or by Atlas Elektronik, a JV which TKMS has control in."