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

New and improved 2018 Subaru Legacy comes packed with a number of upgraded features from the get go - from the exterior to the interior. And the company has finally...
by - June 23, 2017
In an interview involving Lamborghini CEO Stefano Domenicali and Automotive News, the topic about the Urus was thoroughly discussed. This super SUV is scheduled to make its debut later this...
by - June 23, 2017
Porsche definitely adores variety. You’ll see what we mean if you browse through the official company's website that shows a plethora of various 911 models. And now, the German marque...
by - June 23, 2017
2018 Ford Expedition is on its way to the market, and will be arriving at dealerships this fall. The all-new SUV will come with a new design, new EcoBoost engine,...
by - June 23, 2017
The 2018 Porsche 911 GT2 RS that made its debut not so long ago at the E3 video game expo in Los Angeles has already been sold out according to...
by - June 23, 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