In a recent series of decisions, the European Commission has given its approval for two significant business undertakings in the transportation and hospitality sectors. These approvals, granted under the EU Merger Regulation, signify the Commission’s commitment to fostering innovative collaborations and acquisitions while ensuring fair competition in the market.
Scania and sennder Forge Partnership for Electric Mobility
The European Commission has greenlit the creation of a greenfield joint venture by Scania CV AB of Sweden (‘Scania’) and sennder Technologies GmbH of Germany (‘sennder’). This joint venture will be dedicated to supplying heavy-duty battery electric vehicles (BEVs) under a unique pay-per-use model. Alongside this, the venture will offer a comprehensive range of digital, physical, and commercial services. Initially, the collaboration will focus on the German market, with ambitions to expand its operations to various other European countries in the near future. Scania, a prominent subsidiary of the Volkswagen Group, holds a global reputation for its truck and bus development and manufacturing capabilities, including BEVs. sennder, on the other hand, specializes in digital road freight forwarding services, catering to a diverse clientele across Europe.
The Commission’s assessment has concluded that this joint venture will not raise competition concerns, given its measured impact on the market. This evaluation adhered to the streamlined merger review procedure.
Coral Reef and MHI Strengthen Position in Hospitality Industry
The European Commission has also approved a multi-faceted acquisition in the hospitality sector. Coral Reef E 2023 S.A. (‘Coral Reef’) and Melia Hotels International S.A. (‘MHI’), both headquartered in Spain, have been granted the joint control of 12 properties and businesses owned by Equity Inmuebles S.L (‘Equity’). Additionally, Coral Reef will attain sole control over three Equity properties and businesses, while MHI will gain sole control over two Equity properties and businesses.
Equity boasts a diverse portfolio of 17 hotels spread across mainland Spain and the Canary Islands. Coral Reef, a subsidiary of the Abu Dhabi Investment Authority, specializes in holding and administering companies and financial instruments. MHI, a renowned hotel chain, operates across a global spectrum including Asia, Europe, the Middle East, Africa, and the Americas.
The European Commission’s review concluded that these acquisitions would not raise any competition concerns, given their limited market impact. This evaluation was conducted using the expedited merger review procedure.
These approvals reflect the European Commission’s commitment to encouraging collaborations that contribute to innovation and growth in various industries while maintaining a competitive landscape. For more detailed information, please refer to the Commission’s competition website and the respective case numbers: M.11145 and M.11146.
https://ec.europa.eu/commission/presscorner/detail/en/MEX_23_4221