Mergers: Commission approves D'Ieteren's acquisition of PHE, subject to conditions

4 Aug 2022 01:17 PM

The European Commission has approved, under the EU Merger Regulation, D'Ieteren's acquisition of PHE. The approval is conditional on full compliance with commitments offered by D'Ieteren.

Executive Vice-President Margrethe Vestager, in charge of competition policy, recently said:

More than 90% of French motorists buy glass breakage insurance, and more than 3 million windshields are repaired each year. Lack of competition on this market could therefore result in higher insurance premiums for all consumers. D'Ieteren and PHE are both leading providers of vehicle glass repair and replacement services in France. With the divestments approved today, the parties will be able to bring together their activities in the automobile repair and spare parts sectors, while ensuring that the transaction will not have a harmful impact on French motorists.”

D'Ieteren is active, through its subsidiary Belron, in the repair and replacement of vehicle glass in a number of Member States, including in France. The brands of workshops under its control include Carglass, Safelite and Autoglass. PHE is active in the repair of vehicle glass in France, through a network of workshops under the brand Mondial Pare-Brise and through the Glass Auto Service label.

The Commission's investigation

Given Carglass's leading position in the French market for the provision of vehicle glass repair and replacement services, the Commission had concerns that the transaction would have reduced competition in vehicle glass repair and replacement services in France.

Since the majority of car owners in France are insured for vehicle glass damages, insurance companies account for approximately 80-90% of the demand for vehicle glass repair and replacement. They usually also bear almost the entire cost of the repair. Therefore, insurance companies aim at subscribing framework agreements with networks of specialised glass repairers, in order to offer a comprehensive choice of repairers to their customers across the French territory and to negotiate the price of the repair.

The Commission's investigation showed that:

The proposed remedies

To address the Commission's competition concerns, D'Ieteren offered to divest Mondial Pare-Brise and the Glass Auto Service label in their entirety.

These commitments fully remove the overlap between D'Ieteren and PHE's vehicle glass repair and replacement services activities in France.

Following the market test, the Commission therefore concluded that the transaction, as modified by the commitments, would no longer raise competition concerns. The decision is conditional upon full compliance with the commitments. 

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