13.12.2006 Official Journal of the European Union L 353/19 () COMMISSION DECISION of 13 July 2005 declaring a concentration compatible with the common market and the EEA Agreement (Case No COMP/M.3653 — Siemens/VA Tech) (notified under document number C(2005) 2676) (Only the German text is authentic) (Text with EEA relevance) (2006/[EC) On 13 July 2005 the Commission adopted a Decision in a merger case under Council Regulation (EC) No 139/2004 of 20 January 2004 on the control of concentrations between undertakings, and in particular Article 8(2) of that Regulation. A non-confidential version of the full Decision can be found in the authentic language of the case and in the working languages of the Commission on the website of the Directorate-General for Competition, at the following address: http:/ [ec.europa.eu/comm/competition/index_en.html. L EXECUTIVE SUMMARY This case concerns the takeover by Siemens of the Austrian engineering group VA Tech. Siemens is a diversified engineering group active in the following core business areas: information and commu- nications, automation and control, power technology, transportation, street lighting and medical equipment. VA Tech, headquartered in Linz, is Austria’s largest industrial group with a EUR4,3 billion annual turnover and some 17 000 employees. Its four main business areas cover power generation, power transmission and distribu- tion, metallurgy and electrical plant building and infra- structure. On 10 December 2004, Siemens launched a public bid for VA Tech aimed at raising its current 16,45 % shareholding to at least 50 % plus one share. [...] (*). The only outstanding condition for the bid to become effective at this point is the Commission’s regulatory approval. The proposed acquisition, whereby Siemens acquires sole control over VA Tech, constitutes a concentration within the meaning of Article 3(1)(b) of the Merger Regulation. The undertakings concerned have a combined aggregate worldwide turnover of more than EURS5 billion (Siemens: EUR?74 billion for the year ending 30 September 2003; and VA Tech: EUR3,9 billion in 2003). Siemens and VA Tech each have an aggregate Community-wide turnover in excess of EUR250 million [...] (). Neither of the companies achieves more than two thirds of its aggregate Community- wide turnover within one and the same Member State. The notified transaction therefore has a Community dimension. Parts of this text have been edited to ensure that confidential information is not disclosed; those parts are enclosed in square brackets and marked with an asterisk. (7) The Commission’s market investigation confirmed that the proposal leads to numerous horizontal and vertical over- laps in the fields of power generation (see Section A), power transmission and distribution (B), rail transport technology (Q), frequency inverters (D), metallurgical and electrical plant building (E), low-voltage switchgear (F), building technology (G), infrastructure and ropeways (H) and other IT services (I). The Commission came to the conclusion in its Decision that, having regard to the commitments given by the parties in the areas of (i) hydroelectric power equipment and (ii) mechanical metallurgical plant building, the notified merger did not significantly impede effective competition in any of these areas either in the common market or in a substantial part thereof. 1. DETAILED SUMMARY A. POWER GENERATION Al. EQUIPMENT FOR HYDROELECTRIC POWER PLANTS Relevant markets Equipment for hydroelectric power plants comprises a large number of separate components, notably hydroelectric turbines, generators and various other mechanical and electrical parts (known as the mechanical (electrical) balance of plant). Customers often tender for these components separately, especially in Europe, where most demand is for replacement or modernisation of existing hydroelectric power plants. The different components are