The European Court of First Instance has today annulled the Commission’s decisions declaring the acquisition by Schneider Electric SA of Legrand SA incompatible with the Common Market and ordering divestment.
Schneider and Legrand are the two principal French manufacturers of electrical equipment. The Commission was notified of Schneider’s proposed takeover of Legrand on 16th February 2001 and a detailed investigation was opened on 30th March 2001. Schneider announced a public offer for the exchange of shares on 15th January 2001 and offer closed on 25th July 2001.
On 10th October 2001 the Commission announced that Schneider had failed to put forward in good time adequate undertakings to ensure effective competition in France and in a number of other countries, and published a decision prohibiting the merger. The Competition Commissioner, Mario Monti, said at the time that the case highlighted "the absolute need for partners in a merger which involves clear competition concerns
