German antitrust regulators have blocked Magna’s takeover of Karmann’s roof division

Article by Christian A., on August 26, 2010

To avoid a scenario where there's a lack of competition, Magna International Inc.'s planned takeover of bankrupt supplier Wilhelm Karmann GmbH's roof division was blocked by German antitrust regulators.

Last Wednesday, Andreas Mundt, president of the German Federal Cartel Office (FCO), said that the market in Europe for convertible roof systems is "already highly concentrated."

He thinks that a Magna-Karmann tie-up would mean that there would only be two big providers. They worry that if the acquisition were allowed, the market for convertible roofs would be dominated by Magna/Karmann and Webasto. The Germany-based Webasto had recently acquired the roof unit of German supplier Edscha.

Mundt said that it's probable that the lack of competition would lead to higher prices. In 2009, the value of Europe's convertible roof business was about 600 million euros (about $733 million).

In a March interview with Automotive News Europe, Guenter Apfalter, president of Magna International Austrian unit Magna Steyr, was asked if carmakers were concerned about the potential lack of competition.

He said that the OEMs, which make convertible cars, are actually supportive of the deal. He added that the OEMs think that the industry needs a "strong company in the roof business with a strong financing backing." [via autonews]

Topics: magna, germany

If you liked the article, share on:

Comments

Recommended

In September 27, 2016, Porsche initially filed for a patent that is the “Unique Active Rear Diffuser”. And earlier this week, on April 27, 2017, the United States Patent and...
by - April 29, 2017
The Insurance Institute for Highway Safety (IIHS) has given its Top Safety Pick+ award to the redesigned version of the 2017 Kia Cadenza. This was a result of excellent a...
by - April 29, 2017
It’s pretty neat if you possess something of an extraordinary breed like, say, the Pagani Huayra. There are after all just a total of 100 units ever been built by...
by - April 28, 2017
If you’ve ever visited an arcade, chances are you have already seen a Logitech G920 wheel. If that doesn’t ring a bell, it’s the steering wheel that you use when...
by - April 28, 2017
Toyota Motor Corporation disclosed that it will be bringing two of its Mirai fuel cell vehicles to China by October of this year. Tests will then be conducted on these...
by - April 28, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries