Bundeskartellamt clears acquisition of Fenwal by Fresenius
The Bundeskartellamt has cleared the planned acquisition of Fenwal Holdings Inc by Fresenius Kabi AG. Both companies are active in blood transfusion technology and manufacture products used in blood collection, filtration and processing.
Andreas Mundt, President of the Bundeskartellamt:
"Although the companies together hold a high market share, the merger could still be cleared. Under consideration of all the market conditions, the project is not expected to create a dominant position."
In the course of its intensive investigations the Bundeskartellamt examined in detail the situation on the market. All the manufacturers of systems for so-called whole blood processing which are active in Germany and their most important customers were surveyed. Possibilities for customers to switch to alternative suppliers were also investigated. The authority concluded that in spite of the high market shares of the two companies of more than 33%, the project was not expected to create a dominant position. The companies concerned are faced with strong customers (primarily the German Red Cross), which procure blood bag systems by tender and are usually supplied by a number of manufacturers. In addition, customers of the companies are able to switch to an adequate number of alternative suppliers in Germany and abroad. The Bundeskartellamt's investigations also revealed that there is strong price competition in the market.
The proposed merger has already been cleared by the competition authorities in Austria, Norway, Brasil, USA and Turkey.
The decision is not yet final.