Zf Friedrichshafen Ag
Case brief
What is this about?
The Competition Commission assessed ZF's proposed acquisition of WABCO, finding prima facie adverse effects on competition in brake and clutch systems. The Commission accepted a condition requiring ZF to divest its 49% stake in joint venture Brakes India to a third party to preserve competition.
What did the court decide?
Condition to divest ZF's 49% shareholding in Brakes India to an independent third party within specified periods, subject to Commission approval.
What the court decided
COMPETITION COMMISSION OF INDIA
14th February, 2020
Combination Registration No. C-2019/11/703
Notice under Section 6(2) of the Act given by ZF Friedrichshafen AG
CORAM:
Mr. Ashok Kumar Gupta Chairperson
Ms. Sangeeta Verma Member
Mr. Bhagwant Singh Bishnoi Member
ORDER UNDER SECTION 31 OF THE ACT
I. BACKGROUND
- On 7th November, 2019, the Competition Commission of India received a Notice under Section 6(2) of the Competition Act, 2002 ( Act ) from ZF Friedrichshafen AG ( ZF/ Acquirer ) regarding its proposed acquisition of WABCO Holdings Inc. ( WABCO ) (hereinafter, ZF and WABCO are collectively referred to as Parties ). The Parties entered into a Business Transfer Agreement ( BTA ) dated 28.03.2019, pursuant to which ZF will acquire 100% of shares in WABCO, via its indirect wholly owned subsidiary Verona Merger Sub Corp.
Issues for consideration
2 issues framed by the court
Whether the proposed acquisition of WABCO by ZF prima facie caused appreciable adverse effect on competition in the market for brake and clutch systems for commercial vehicles.
Whether the voluntary remedy proposal involving divestment of ZF's stake in Brakes India sufficiently addresses the identified competition concerns.
Parties & counsel
- applicant
ZF Friedrichshafen AG
- respondent
WABCO Holdings Inc.
Coram
Ashok Kumar Gupta
Case details
As recorded by the court registry
All orders in this case
2 orders share this CNR
- Order 1
- Order 2 — this page
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