Siemens-Dresser-Rand phase 2 review unnecessary

Author: Lizzie Meager | Published: 30 Jul 2015

Lawyers have questioned the necessity of the European Commission’s (EC) interference in Siemens’ acquisition of Dresser-Rand.

The EU competition authority approved the deal unconditionally on June 29, more than five months after the transaction was notified on January 9 2015. Its review included an in-depth phase 2 investigation into the potential competition impediment on the turbo compressors and drivers market.

The companies were two of three major players in this sector, making this one of the first transactions of its kind to be approved on such favourable terms.

But deal counsel have queried why Commission took such a close look at the deal, when the parties’ major activities fall outside the EU.

"The EC was definitely the most detailed review, and that was somewhat surprising because many of these oil and gas projects are not in...