EU Approves Piaggio/Aprilia Deal
November 23, 2004
Filed under Features
The European Commission in Brussels today authorized the proposed acquisition of Aprilia S.p.A. by Piaggio & C. S.p.A. subject to a condition intended to safeguard competition and the interests of European consumers in the Italian market for small scooters.
Piaggio’s portfolio in the two-wheel sector includes the Piaggio, Vespa, Gilera and Derbi brands. Aprilia produces the Aprilia and Moto Guzzi brands. The combined companies will have sales of around $2 billion, manufacturing 600,000 motorcycles and scooters a year.
Unconcerned with the merger on a global scale, the Commission said the transaction had raised serious doubts that competition might be reduced to the detriment of Italian customers of scooters with engines up to 50cc. However, Piaggio allayed doubts by offering to supply its four-stroke 50cc engine “at commercial terms” to any Italian producer that expresses an interest.