BRUSSELS (Thomson Financial) - The European Commission said it has opened an in-depth investigation into A-Tec Industries AG's Austrian engineering unit Austrian Energy & Environment AG's (AEE) proposed acquisition of GEA Group AG's Lentjes GmbH.
The commission's initial market investigation found the transaction 'may create competition problems given the two companies' overlapping activities in the sectors of engineering and supply of municipal incineration plants'.
The commission now has 90 working days, until Dec 12, to either clear or prohibit the deal.
EU competition commissioner Neelie Kroes said: 'AEE and Lentjes are active in a growing sector of increasing economic and environmental importance, where customers are often public bodies. It is therefore crucial that the Commission verifies that effective competition will be preserved so as to ensure an efficient use of taxpayers' money'.
AEE is a diversified engineering group with its main activities in the areas of combustion systems, grate-fired boilers, flue gas cleaning and flue gas desulphurisation systems.
Lentjes' main business area is the supply of complete waste-to-energy plants providing in particular the engineering part. simon.zekaria@thomson.com sz/am COPYRIGHT Copyright AFX News Limited 2007. All rights reserved. The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News.