Home / Knowledge / News / Textiles / EC clears proposed acquisition of BarcoVision by Itema
EC clears proposed acquisition of BarcoVision by Itema
04
Aug '08
The European Commission has approved under the EU Merger Regulation the proposed acquisition of BarcoVision of Belgium by the Italian company Itema. Itema produces textile machinery while BarcoVision manufactures sensors and other inputs for the textiles industry. After an in-depth examination, launched in April 2008 (see IP/08/571), the Commission concluded that the transaction would not significantly impede effective competition in the European Economic Area (EEA) or any substantial part of it.

Competition Commissioner Neelie Kroes said: “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. We looked at this very carefully, but it is now clear that this deal will have no negative consequences on textile quality or prices.”

Itema is active in the production and sale of machinery for textile manufacturing. Itema is one of the three main companies supplying textile mill owners with winders, which are machines used to stock yarn before it is woven or knitted.

BarcoVision focuses on the production and sale of sensors for textile machinery as well as software systems specifically designed for the textile industry. BarcoVision is one of the two main companies currently producing sensors for winders, an essential component of the winder to ensure yarn and textile quality.

On 14 April 2008, the Commission opened an in-depth investigation (see IP/08/571) to assess whether the new entity would be likely to stop supplying competing winder manufacturers with sensors, thereby raising the prices of winders for textile mills.

The Commission's analysis is in line with its Guidelines on the assessment of non-horizontal mergers (see IP/07/1780). It mainly focused on the merged company's incentives to stop selling sensors to competitors – effectively withdrawing from the sensor market in order to raise its competitors' costs. The Commission concluded that such a strategy would not be profitable for the merged company: the additional profits made on the winder market would not compensate the losses incurred on the sensor market by refusing to sell to competitors.

The Commission also assessed the incentives of the other main supplier of sensor to increase sensor prices following the merger and concluded that the merged firm's ability to raise competitors' costs will be limited. In addition, competitors on the winder market are able to start in-house production of sensors in the medium term and this would further constrain the sensor suppliers' behaviour. As a result, the Commission concluded that the proposed concentration does not raise any competition concerns.

European Commission

Must ReadView All

L-R Manish Singhai, COO, Peter England; Vinai Kumar Saxena, chairman, KVIC; Ashish Dikshit, business head, ABFRL and Anshu Sinha, CEO, KVIC while signing agreement. Courtesy: ABFRL

Textiles | On 24th May 2017

Aditya Birla & KVIC enter into a strategic partnership

Aditya Birla Fashion and Retail Ltd (ABFRL) and Khadi and Village...

Courtesy: Jabong

Apparel/Garments | On 24th May 2017

Jabong Mood Store redefines online shopping in India

Jabong, India's leading online fashion retailer, has launched the...

Textiles | On 24th May 2017

Starlinger unveils FX 8.0 circular loom for fabric making

Starlinger, a leading supplier of machinery for woven plastic...

Interviews View All

Sanjay Yagnik
Maa Tex Speciality

‘We suggest reducing dosage of sizing chemicals to reduce sludge...

Mohammad Mamun Ar Rashid
UL VS Bangladesh Ltd

Productivity, creativity and innovation play a vital role in the growth of ...

Vidhyaa Shankar. S
A Ganapathi Chettiar

'The usage of knits is getting into the boundaries of woven fabrics'

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Marten Alkhagen
Swerea IVF AB

Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...

Urs Stalder
Sanitized AG

Urs Stalder, CEO, Sanitized AG, talks about the increasing use of hygiene...

Sonam & Paras Modi
SVA

Sonam and Paras Modi's Sva Couture is synonymous with head-turning...

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

news category


Related Categories:
May 2017

May 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search