EC Approves European Air-Brake Venture
Oct. 18, 1993
BRUSSELS, Belgium (AP) _ The European Community Commission Monday approved a joint venture between AlliedSignal Inc. and Germany's Knorr-Bremse AG to provide air-brake components for trucks, buses and trailers.
The companies will contribute their existing businesses to the venture, the Commission said in a statement.
By joining together, the two companies will pull closer to EC market leader Wabco, which is part of the Westinghouse Group. The venture will become the market leader in France, Britain and Italy.
AlliedSignal and Knorr-Bremse are currently the No. 2 and No. 3 suppliers in Western Europe for most of the components that make up air actuation systems, which create and control braking power.
Under EC law, the Commission must review mergers and other accords between large companies to ensure they do not harm competition.
The Commission said the venture would not create a dominant competitor in the 12-nation market because of the buying power of truck makers, possible new market entrants and industry innovation.