Press Release: Mergers: Commission opens in-depth investigation into acquisition of Alcatel Alenia Space and Telespazio by Thalès

The European Commission has opened a detailed investigation under the EU Merger Regulation into the acquisition by Thalès of France of Alcatel's shareholdings in the two space joint ventures Alcatel Alenia Space (AAS) of France and Telespazio of Italy, currently jointly controlled by Alcatel and Finmeccanica. The Commission’s initial market investigation found that the proposed transaction gives rise to competition concerns because of the combination of Thalès's dominant position for Travelling Wave Tubes (TWTs), a critical component for telecommunications satellites, and AAS's activities as a manufacturer of satellite subsystems and components, and as a satellite prime contractor. A decision to open an in-depth inquiry does not prejudge the final result of the investigation. The Commission now has 90 working days (until 17 April 2007) to take a final decision on whether the concentration would significantly impede effective competition within the European Economic Area (EEA) or a significant part of it.