INA/FAG Acquisition of SNFA Stalled by EC Inquiry

FAG Kugelfischer Georg Schafer AG (Germany, a division of INA Holding KG, Germany) has been dealt another setback in its attempted acquisition of French precision bearingmaker SNFA S.A. The European Commission is withholding approval of the acquisition pending an in-depth investigation by its Competition directorate. The provisional deadline for the investigation is March 5, 2004. In its decision to launch the investigation, the EC said it, "decided to initiate proceedings in the abovementioned case after finding that the notified concentration raises serious doubts as to its compatibility with the common market." FAG began its moves to acquire SNFA back in early 2002, before FAG's acquisition by INA was complete. The proposed acquisition actually came to light as FAG wrapped up its affairs and disclosed the details of operations and acquisition targets to INA and its shareholders. At the time, FAG was using the SNFA acquisition to justify an additional