Bundeskartellamt prohibits planned concentration of Leggett & Platt and AGRO Federkernproduktions GmbH

The Bundeskartellamt has prohibited the planned acquisition of all assets of AGRO Federkernproduktions GmbH (AGRO), Bad Essen, by the American Leggett & Platt Group. The planned concentration would have resulted in a dominant position of Leggett & Platt and AGRO in the national market for wire spring cores used in mattresses and upholstered furniture. Spring cores are used as an essential supporting component in mattresses and upholstered furniture. Bonnell spring cores and pocket spring cores are best known to consumers as they are used in mattresses.

With a market share of close to 50 per cent, AGRO is the leading company in this market in Germany. After the concentration the combined market share of AGRO and Leggett & Platt would have amounted to more than 60 per cent. Other competitors are in particular small, privately run companies that would hardly be able to compete with the joint market power of AGRO and Leggett & Platt. Leggett & Platt is also the leading company in Europe, followed by AGRO. Their joint market share in Europe would have exceeded that in Germany. In the United States Leggett & Platt enjoys an almost monopolistic position. In addition, Leggett & Platt dominates the upstream market for machines used for the manufacture of spring cores via its subsidiary Spühl AG, Switzerland.

In the course of the proceedings sector-wide surveys were conducted in Germany in which all manufacturers of spring cores and the majority of manufacturers of mattresses and upholstered furniture were questioned. In addition, numerous competitors, buyers and trade associations from abroad were questioned.

The decision can be appealed against before the Düsseldorf Higher Regional Court. The wording of the decision will soon be available at www.bundeskartellamt.de.