FIATIMPRESIT-MANNESSMANN-TECHINT/ITALIMPIANTI
PRESS RELEASE
The Italian Competition Authority has initiated a proceeding to investigate the merger between Mannesmann Demag AG (controlled by Mannesmann AG) and Italimpianti Spa (controlled by Fintecna Spa). In the course of investigation, the Authority intends to verify if the acquisition by Mannesmann Demag AG of Italimpianti's operating division, of Italimpianti of America Inc., of Innocenti Santeustacchio Spa and of Innocenti Engineering Spa is likely to eliminate or reduce competition substantially and on a lasting basis in the market for the planning, construction and distribution of stainless steel plants.
This merger falls within the process of privatisation of Italimpianti that should lead to three separate operations.
In addition to Mannesmann Demag AG, Techint Spa and Fiatimpresit Spa are proposing to acquire other Italimpianti's activities dealing with steel engineering and engineering and environmental services.
The preliminary examination of these other two parallel operations has lead to the conclusion that there are not reasons to initiate a procedure to investigate the matter further. The three mergers fall within the scope of Law no. 287/90, since the conditions which could trigger the application of the EC merger Regulation are not met; as such, the mergers will be appraised by the Italian Competition Authority.
The Authority intends to verify if the merger is likely to cause relevant anti competitive effects, in particular on the market for the planning, production and distribution of seamless tube mills. These effects might be considerable both on the horizontal profile, in relation to the increase in know-how and productive capacity acquired by Mannesmann Demag Ag, and on the vertical profile, in relation to the increase in the stock of reputation gained in the markets of production technologies and for the product itself (stainless steel tubes), where the Mannesmann group is present. As a matter of fact, Mannesmann Demag Ag, Italimpianti Spa, Innocenti Santeustacchio Spa, Innocenti Engineering Spa and Italimpianti of America Inc. hold substantial market power as a result of their vast experience with regards to both the specific know-how and the production of the mills. If these firms would fall under the same control, they monopolise, at the international level, the relevant product market of seamless tube mills.
The investigation is to be concluded by the end of January 1996.
Anybody interested third party may submit their opinions and considerations with regards to the proposed merger to the Italian Competition Authority, Investigative Unit B, Via Liguria, 26, 00187 Rome; phone 39 6 481621 - fax 39 6 48162370 - e-mail: antitrust@agcm.it.