Bundeskartellamt clears partial acquisition of Diehl Defence Land Systems GmbH by Krauss-Maffei Wegmann

In the first phase of merger control the Bundeskartellamt has cleared the planned acquisition of a part of Diehl Defence Land Systems GmbH, Freisen, by Krauss-Maffei Wegmann GmbH & Co. KG, Munich. The business to be acquired is the track production and repair business for Diehl armoured vehicles, which was transferred to DST Defence Service Tracks GmbH, Freisen.

With DST Krauss-Maffei Wegmann acquires the only German track manufacturer for military vehicles. However, its integration into the armaments company Krauss-Maffei Wegmann is unlikely to disadvantage other market players in terms of potential market foreclosure. Krauss-Maffei Wegmann's market position in the maintenance business will be strengthened but the merger will not significantly impede effective competition in the market. There are a large number of competitors in this sector which, although mostly smaller suppliers, can successfuly compete for the orders put out to tender.

In its investigations the Bundeskartellamt carried out extensive surveys at national and international competitors and at the procurement services of the Federal Armed Forces as principle customers.

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