The European Commission cleared the proposed acquisition by the Dutch company Philips of the US-based company Intermagnetics on November 7. After examining the operation, the Commission concluded that the transaction would not significantly impede effective competition in the European Economic Area or any substantial part of it.
Philips markets a wide range of electrical and electronic products, such as lighting products, domestic appliances, consumer electronics, semiconductors and medical systems, including magnetic resonance imaging (“MRI”) systems. Intermagnetics manufactures magnets and radio-frequency used in MRI systems, as well as patient monitors, computer-aided detection systems and so-called functional MRI.
In particular, Intermagnetics currently supplies radio-frequency coils to Philips and several other MRI system manufacturers. Thus, the Commission analyzed whether the proposed transaction enabled the new entity to disrupt the supply of coils and to hinder its competitors to compete effectively on the market for MRI systems. The market investigation showed that these risks were minimal, mainly due to economic incentives and the presence of several other suppliers of coils for MRI systems. In addition, manufacturers of MRI systems can produce coils internally. Consequently, the Commission concluded that the proposed transaction would not give rise to any significant reduction of competition.
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