Brussels approves textile technology merger
04/08/2008
Italian machinery provider Itema Group has won clearance from the European Commission to go ahead with its acquisition of BarcoVision—a maker of tools to optimise production processes in the textile industry—for EUR 72 million after an in-depth competition investigation.
“Itema and BarcoVision are both key players in the textile production chain, this merger will bring together a major textile machine manufacturer with one of its sensor suppliers,” said competition commissioner, Neelie Kroes.
The Commission had been concerned that the merged company might stop selling to competitors to raise their costs.
“We concluded that such a strategy would not be profitable for the merged company,” the Commission said. “The additional profits made on the winder market would not compensate the losses incurred on the sensor market by refusing to sell to competitors.”
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