European Commission Conditionally Approves Nidec's Acquisition Of Embraco
(RTTNews) - The European Commission has approved, under the EU Merger Regulation, the proposed acquisition of Whirlpool Corp.'s (WHR) refrigeration compressor business Embraco by Nidec Corp. (NJDCY.PK). The approval is conditional on compliance with Nidec's commitments.
The Commission had concerns that the transaction would have reduced competition and resulted in higher prices and less choice in the markets for fixed speed refrigeration compressors for light commercial applications, variable speed refrigeration compressors for light commercial applications, and variable speed refrigeration compressors for household applications.
The Commission did not find competition concerns regarding fixed speed refrigeration compressors for household applications.
Nidec decided to address the Commission's competition concerns by proposing a set of commitments.
Nidec offered to divest its refrigeration compressor business for both household and light commercial applications. It also committed to make available to the purchaser of the divestment business significant funding for future investments in the facilities.
Therefore, the Commission concluded that the proposed transaction, as modified by the commitments, would no longer raise competition concerns in the EEA and worldwide. The Commission's decision is conditional on full compliance with the commitments.
On April 24, Whirlpool agreed to sell Embraco to Nidec for a cash purchase price of $1.08 billion, subject to customary working capital and indebtedness adjustments. The transaction was expected to close in early 2019.
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