FAG Abandons Plan to Acquire SNFA

SCHWEINFURT, Jan. 16, 2004. FAG Kugelfischer AG, a member of the Schaeffler Group headquartered at Herzogenaurach/Germany, has given up its intention to acquire the French rolling bearing manufacturer SNFA. According to the Schweinfurt-based company, the European Commission had indicated that approval of the transaction would likely be conditional on significant commitments, which are not acceptable for FAG. The company therefore decided to refrain from further activities in the matter. Throughout the process, the parties had emphasized that SNFA would continue to operate in the market as an independent company. Nevertheless, the European Commission had raised concerns about the potential creation of a dominant position in the special bearing sector.