The European Commission has cleared under the EU Merger Regulation the proposed acquisition of German car plastic components maker Plastal GmbH, by Faurecia SA, a subsidiary of Peugeot that also makes components for the car industry.

After examining the operation, the Commission concluded that the transaction would not significantly impede effective competition in the European Economic Area (EEA) or any substantial part of it.

Faurecia is a global supplier of automotive equipment, in particular vehicle seating, interiors, front ends and exhaust systems. Plastal is active in the engineering, production and supply of plastic components for the automotive industry, in particular of bumpers and front-end carriers.

The parties' activities overlap in the markets for the manufacture and supply of bumpers, front end carriers and instrument panels for light vehicles. However, the Commission's investigation found that the proposed merger would not give rise to any significant competition concerns as the parties are not each other's closest competitors and will continue to face several credible competitors in all of these markets.

Given that Faurecia is controlled by PSA Peugeot Citroën SA, the Commission also examined the vertical link between a supplier of car components and a manufacturer of passenger cars. The Commission concluded that the merged entity would not have the possibility to close off the markets, as a significant number of alternative car component suppliers remain upstream and a large customer base downstream.

The transaction was notified to the Commission on 17 February 2010.