The Danish Competition Council has approved Knorr-Bremse Sys-teme für Schienenfahrzeuge GmbH’s acquisition of sole control over Selskabet af 3. juli 2021 ApS (DSB Component Workshop) subject to commitments

On 22 June 2022 the Danish Competition Council has approved Knorr-Bremse Systeme für Schienenfahrzeuge GmbH’s (“Knorr-Bremse”) acquisition of sole control over Selskabet af 3. juli 2021 (“DSB Component Workshop”), a business unit formerly part of DSB Vedligehold A/S. Knorr-Bremse has committed to supply spare parts on fair, reasonable and non-discriminatory terms to Knorr-Bremses current and future smaller, Danish costumers for a period of 10 years.

Knorr-Bremse is a German manufacturer of equipment and components for trucks and trains. In Denmark, Knorr-Bremse sells components and spare parts in the independent aftermarket for Knorr-Bremse systems within brakes, doors and air conditioning for trains. Furthermore, Knorr-Bremse provides heavy maintenance on its own components. Knorr-Bremse’s largest customer in Denmark is DSB Vedligehold A/S, including DSB Component Workshop.

DSB Component Workshop provides heavy maintenance of trains and, to a lesser extent, supplies its customers with spare parts. The main customer of DSB Component Workshop is DSB, but DSB Component Workshop also serves some external customers, mainly in Denmark.

Based on an overall assessment the Danish Competition Council considered that the merger would lead to a significant impediment to effective competition due to the vertical relationship between the merging parties in the market for manufacturing and sale of spare parts for trains and the market for heavy maintenance of trains. After the merger Knorr-Bremse will become vertically integrated, which would give Knorr-Bremse the opportunity and incentive to raise prices or degrade conditions for smaller, Danish companies that are in need of spare parts.

To meet the concerns of the Danish Competition Council, Knorr-Bremse has submitted four commitments. Overall, the commitments ensure that Knorr-Bremse continues to supply spare parts to smaller, Danish customers at fair, reasonable and non-discriminatory prices and terms 10 years after the merger.