The Finnish Competition and Consumer Authority (FCCA) approved an acquisition on 20 April 2017 by which Yamaha Motor Europe N.V. and Inhan Tehdas Oy Ab, which belongs to its group of undertakings, is to acquire part of Konekesko Oy’s motor boat production and sales operations. Based on the FCCA’s investigations, the acquisition will not significantly impede effective competition.
In the acquisition, Yamaha Motor Europe N.V. and Inhan Tehtaat Oy Ab – Buster Boats, a company it owns, would acquire the following business operations from Konekesko: the manufacturing outsourcing and sales of Yamarin and Yamarin Cross leisure-time boats; the sales of Finnmaster, TG-Boats and Zodiac motor boats, and the import and sales of Yamaha’s leisure machines and devices.
The FCCA decided to commence further proceedings concerning the transaction in January 2016, as the Authority´s preliminary investigations suggested that the acquisition could have adverse impacts on competition in the leisure-time motor boat market because Yamaha and Konekesko are major competitors of each other.
The FCCA carried out an econometric impact assessment in the matter, taking into account upward pressure on prices arising from the acquisition as well as balancing factors, such as cost savings to be gained through the transaction, increased efficiency of the boat and outboard motor supply chain and entry into the sector.
Based on the FCCA’s investigations, the acquisition will not significantly impede effective competition, nor is it likely to appreciably increase motor boat prices. Although the competitive pressure faced by the parties will decrease as a result of the acquisition, efficiency gains arising from the transaction will cancel out most of the detrimental effects on competition. The Authority has concluded that there are no significant obstacles to entering the sector or to the expansion of the activities of competitors.
The Authority has assessed the acquisition’s impacts not only on the leisure motorboat market but also on the sales market for outboard motors as well as for other leisure machines and devices. Konekesko already had exclusive rights in Finland to import Yamaha outboard motors and other Yamaha leisure-time machines and devices before the acquisition. The FCCA therefore concludes that the acquisition will not have any significant detrimental impacts on competition in the sales market for outboard motors or leisure-time machines and devices in Finland.
Further information: Sanna Syrjälä, Head of Research, tel. +358 29 505 3385; Olli Kauppi, Chief Economist, tel. +358 29 505 3394
According to the Competition Act, the FCCA must be notified of the transaction if the combined turnover of the parties to the corporate transaction exceeds 350 million euros and the turnover of at least two of the parties resulting from Finland exceeds 20 million euros for both. FCCA approves a corporate transaction if it has no harmful impacts referred to in the Competition Act. FCCA will intervene in corporate transactions if its investigations suggest that the acquisition may significantly impede effective competition on Finnish markets or a substantial part of the markets, particularly through the creation or reinforcement of a dominant market position.
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