American Industrial Equipment Company Manitowoc Cleared by U.S. to Buy U.K.’s Enodis PLC
Industrial equipment company Manitowoc Co. got approval October 8 from the U.S. Justice Department’s Antitrust Division to buy Enodis PLC of the United Kingdom.
In late September, the companies received clearance from the European Commission to proceed with the deal, as long as Manitowoc agreed to sell Enodis’s ice-making machine business in the European Economic Area. The Justice Department concurred in October that the sale of the ice-making machine business in the U.S. was also key to its approval of the $2.1 billion deal.
Enodis produces commercial food and beverage such as fryers, grills and refrigerators. Manitowoc is active in several sectors, including ice making machines, beverage dispensers and refrigeration equipment. In 2007, Manitowoc sold about $152 million of commercial ice machines and Endodis sold about $153 million of the same.
The European Commission was concerned about the parties’ overlap in the areas of commercial ice machines and beverage dispensers. The EC’s initial investigation found that the acquisition would raise competition concerns in a number of member states. After the acquisition, the EC found, the merged company would have a very large market share in relation to the three types of ice making machines: self-contained cubers, modular cubers and flake machines. All other competitors to the combined company would have substantially lower market shares.
The EC was also concerned about certain non-ice businesses of Enodis located in Italy that are operated under the Tecnomac and Icematic brands. Manitowoc agreed to sell these production facilities as well.
The EC ruled that with the divestiture of the ice-making machine businesses and the production facilities in Italy, the proposed transaction would not significantly impede effective competition in the EEA or any substantial part of it.
The U.S. was concerned about the parties’ overlap in the area of commercial cube ice machines. The acquisition would create a company with about 70 percent of the U.S. market for commercial ice cube machines, which are used by fast food franchises like McDonald’s and Burger King. The acquisition would also cut the number of companies selling such machines from three to two.
The Justice Department noted that without the divestiture of the ice machine business, U.S. purchasers of commercial ice cube machines would have faced higher prices and reduced quality and innovation. However, with the sale of the ice machine business, the merger was found not to violate anti-trust provisions. Government approval of the merger is subject to final court approval.
About the author: Jason Hardy is an avid writer on legal issues, including international writing about many subjects including european antitrust lawsuits. Eu competition law interests Jason particularly. He resides in Seattle, Washington.
In late September, the companies received clearance from the European Commission to proceed with the deal, as long as Manitowoc agreed to sell Enodis’s ice-making machine business in the European Economic Area. The Justice Department concurred in October that the sale of the ice-making machine business in the U.S. was also key to its approval of the $2.1 billion deal.
Enodis produces commercial food and beverage such as fryers, grills and refrigerators. Manitowoc is active in several sectors, including ice making machines, beverage dispensers and refrigeration equipment. In 2007, Manitowoc sold about $152 million of commercial ice machines and Endodis sold about $153 million of the same.
The European Commission was concerned about the parties’ overlap in the areas of commercial ice machines and beverage dispensers. The EC’s initial investigation found that the acquisition would raise competition concerns in a number of member states. After the acquisition, the EC found, the merged company would have a very large market share in relation to the three types of ice making machines: self-contained cubers, modular cubers and flake machines. All other competitors to the combined company would have substantially lower market shares.
The EC was also concerned about certain non-ice businesses of Enodis located in Italy that are operated under the Tecnomac and Icematic brands. Manitowoc agreed to sell these production facilities as well.
The EC ruled that with the divestiture of the ice-making machine businesses and the production facilities in Italy, the proposed transaction would not significantly impede effective competition in the EEA or any substantial part of it.
The U.S. was concerned about the parties’ overlap in the area of commercial cube ice machines. The acquisition would create a company with about 70 percent of the U.S. market for commercial ice cube machines, which are used by fast food franchises like McDonald’s and Burger King. The acquisition would also cut the number of companies selling such machines from three to two.
The Justice Department noted that without the divestiture of the ice machine business, U.S. purchasers of commercial ice cube machines would have faced higher prices and reduced quality and innovation. However, with the sale of the ice machine business, the merger was found not to violate anti-trust provisions. Government approval of the merger is subject to final court approval.
About the author: Jason Hardy is an avid writer on legal issues, including international writing about many subjects including european antitrust lawsuits. Eu competition law interests Jason particularly. He resides in Seattle, Washington.
Labels: eu competition law, eu law, european antitrust lawsuits, ice, ice cube, Manitowac
posted by European Antitrust Law at
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