GE, Merck, Canon broke merger rules, EU charges
Companies face fines, but probes won’t have impact on deals already approved
The European Commission on Thursday charged three companies — Merck KGaA, General Electric and Canon — for allegedly breaching its merger procedural rules that require submission of accurate information and proper notification to authorities.
The investigations by the commission, which is the executive arm of the European Union that handles corporate regulatory matters, could result in fines once they’re completed.
German pharmaceutical giant Merck KGaA is accused of providing incorrect or misleading information related to its $17 billion acquisition of health technology company Sigma-Aldrich in 2015, according to a statement from the commission. Merck KGaA no longer is related to Merck & Co., a U.S. manufacturer.
GE, the U.S. manufacturer, misled European regulators in its $1.65 billion deal to buy Danish manufacturer LM Wind Power this year, the commission said. Canon is accused of completing its deal to buy Toshiba Medical Systems Corp. before notifying and clearing it with the commission as EU rules require.
The companies’ deals already have been approved by European regulators. And the current investigations will not have an impact on the decisions, it said.
“They must obtain our approval before they implement their transactions and the information they supply us must be correct and complete,” Margrethe Vestager, the EC’s commissioner in charge of competition policy, said in a statement.
As GE sought to acquire LM Wind, the commission assessed the wind turbine market’s competitive landscape and the company’s position in it.
In its merger notification to the commission in February shortly before the deal was completed, GE failed to provide information concerning its research and development activities and the development of a specific product.
The company provided more information 11 days later.
The commission said it could fine GE up to 1% of its annual sales if it were to conclude that GE intentionally or negligently supplied misleading information. Merck also could be fined up to 1% of its annual worldwide sales depending on the investigation outcome, the commission said.
Canon declined to comment.