Press Release: Mergers: Commission opens in-depth investigation into proposed acquisition of BarcoVision by Itema

The European Commission opened a detailed investigation under the EU Merger Regulation into the proposed acquisition of BarcoVision of Belgium by the Italian company Itema. Itema produces textile machinery while BarcoVision manufactures sensors and other inputs for the textiles market. The Commission's initial market investigation indicated that the proposed merger raises serious doubts as to its compatibility with the Single Market as there are potential competition concerns due to the vertical relationship between the parties, in particular on the market for winders for stocking unwoven yarn, which might increase the cost or affect the quality of sensors purchased by other winder producers. 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 26 August 2008, to take a final decision on whether the concentration would significantly impede effective competition within the European Economic Area (EEA) or a substantial part of it.