Fluid Power World

  • Home
  • Technologies
    • Hydraulics
      • Cylinders & Actuators
      • Filtration/Contamination Control
      • Fittings, Couplings & Adapters
      • Fluids
      • Fluid Conditioning
      • Hose & Tubing
      • Pumps & Motors
      • Related Technologies
      • Sealing
      • Sensors & Gauges
      • Valves & Manifolds
    • Pneumatics
      • Air Preparation & Regulation
      • Compressed Air Technologies
      • Cylinders & Actuators
      • End Effectors & Grippers
      • Fittings, Couplings & Adapters
      • Hose & Tubing
      • Sensors
      • Vacuum
      • Valves & Manifolds
  • Engineering Basics
  • Trending
  • Resources
    • Digital Issues
    • Distributor Search
    • Engineering Week
    • Podcasts
    • Videos
    • Webinars / Digital Events
    • White Papers
  • Leadership
    • 2020 Leadership in Fluid Power Winners
    • 2021 Leadership in Engineering Winners
  • Women in Engineering
    • Women in Fluid Power
    • Women in Engineering
  • Design Guides
    • Design Guide Library
    • Electro-Pneumatic Regulator & Flow Controller Design
    • Hydraulic Cylinders
    • Hydraulic Filtration
    • Hydraulic Hose Assembly
    • Hydraulic Pumps
    • Pneumatic Actuators
    • Pressure Gauges
  • Events
    • Engineering Week
    • Fluid Power Tech Conference

EU opens investigation into acquisition of Eaton Hydraulics by Danfoss

By Ken Korane | September 22, 2020

Share

The European Commission has opened an in-depth investigation to assess the proposed acquisition of Eaton’s hydraulics business by Danfoss. In a statement Monday, the Commission said it is concerned that the proposed acquisition may reduce competition in the supply of certain hydraulic components for mobile machinery.

Executive Vice-President Margrethe Vestager, in charge of competition policy, said, ”Danfoss and Eaton are both strong players in hydraulic components globally. Manufacturers and distributors active in agricultural and construction machinery depend on access to these components at fair prices for their businesses to thrive. We have opened an in-depth investigation to assess carefully whether the transaction could lead to negative effects for competition, less choice and higher prices for European customers.”

Danfoss and Eaton are both leading manufacturers of hydraulic components globally and the merger would remove one of the main competitors.

The Commission’s initial market investigation identified a number of preliminary concerns in relation to the combination of the companies’ hydraulic components businesses for mobile machinery.

At this stage, the Commission is concerned that the transaction may lead to a reduced choice in suppliers, as well as higher prices, for certain hydraulic components for mobile applications, including hydraulic steering units, electrohydraulic steering valves and orbital motors.

For each of the above hydraulic components the transaction would lead to high combined market shares, in already concentrated markets, where limited credible alternative suppliers to the companies are present. The Commission is however also continuing to investigate the effects of the acquisition on other hydraulic components.

Furthermore, the initial market investigation suggests customers would not have sufficient buyer power to counteract any risk of price increases.

The Commission will now carry out an in-depth investigation into the effects of the proposed transaction to determine whether it is likely to significantly reduce effective competition. The Commission now has until February 3, 2021, to take a decision. The opening of an in-depth investigation does not prejudge the outcome of the investigation.

Other articles for you:

LEAP Award logoEaton’s boom stability control system wins LEAP fluid power award High energy ventilating constricting clutch for driveline component protection Jordon-Vickers-economy-1Fluid power market to continue slow growth pace Danfoss Digital Displacement pump wins Agritechnica award

Filed Under: News
Tagged With: danfoss, eaton
 

Fluid Power World 2021 Handbook

Fluid Power World Digital Editions

Fluid Power World Digital EditionBrowse the most current issue of Fluid Power World and back issues in an easy to use high quality format. Bookmark, share and interact with the leading fluid power magazine today.

Get Fluid Power News Direct

Fluid Power News

RSS Featured White Papers

  • High-force linear motion: How to convert from hydraulic cylinders to electric actuators and why.
  • A technical comparison: Performance of pneumatic cylinders and electric rod actuators
  • Quick Connect Couplings: A Critical Component in Hydraulic Systems

Follow us on Twitter!

Tweets by @wtwh_paulheney
Tweets by @FPW_MaryGannon
Fluid Power World
  • Hose Assembly Tips
  • Mobile Hydraulic Tips
  • Pneumatic Tips
  • Sealing & Contamination Control Tips
  • Advertise
  • About us
  • Contact Us

Copyright © 2022 WTWH Media LLC. All Rights Reserved. The material on this site may not be reproduced, distributed, transmitted, cached or otherwise used, except with the prior written permission of WTWH Media
Privacy Policy | Advertising | About Us

Search Fluid Power World

  • Home
  • Technologies
    • Hydraulics
      • Cylinders & Actuators
      • Filtration/Contamination Control
      • Fittings, Couplings & Adapters
      • Fluids
      • Fluid Conditioning
      • Hose & Tubing
      • Pumps & Motors
      • Related Technologies
      • Sealing
      • Sensors & Gauges
      • Valves & Manifolds
    • Pneumatics
      • Air Preparation & Regulation
      • Compressed Air Technologies
      • Cylinders & Actuators
      • End Effectors & Grippers
      • Fittings, Couplings & Adapters
      • Hose & Tubing
      • Sensors
      • Vacuum
      • Valves & Manifolds
  • Engineering Basics
  • Trending
  • Resources
    • Digital Issues
    • Distributor Search
    • Engineering Week
    • Podcasts
    • Videos
    • Webinars / Digital Events
    • White Papers
  • Leadership
    • 2020 Leadership in Fluid Power Winners
    • 2021 Leadership in Engineering Winners
  • Women in Engineering
    • Women in Fluid Power
    • Women in Engineering
  • Design Guides
    • Design Guide Library
    • Electro-Pneumatic Regulator & Flow Controller Design
    • Hydraulic Cylinders
    • Hydraulic Filtration
    • Hydraulic Hose Assembly
    • Hydraulic Pumps
    • Pneumatic Actuators
    • Pressure Gauges
  • Events
    • Engineering Week
    • Fluid Power Tech Conference