The European Commission has approved the creation of a joint venture between Japanese companies NEC Corp and Toshiba Corp under the European Union’s merger control law. The joint venture will primarily sell satellites and components in the context of Japanese institutional space programmes and will only have minor activities in Europe.
NEC is active in the field of semiconductors, electronic devices, telecommunications, computer systems, broadcast equipment and satellites. Toshiba has activities in information and communications systems, consumer electronics, power systems, electronic components and space related products. The companies will transfer the vast majority of their space related business to the venture called NEC Toshiba Space Systems, which will be 60 percent owned by NEC and 40 percent by Toshiba but will be joint controlled by both.
The deal was notified to the Commission on May 2 under the EU’s merger regulation. The investigation has showed the absence of overlaps between the parties’ activities outside the institutional sector in Japan. The parties are not active in institutional or governmental programs, either civil or military, in Europe. With regard to the world-wide market for commercial satellites, neither of the parties acts as prime contractor for satellites. As regards equipment and components for commercial satellites, there are no overlaps between the parties’ products.
Consequently, the proposed transaction will not give rise to any creation or strengthening of a dominant position in the European Economic Area.
