The European Commission approved the proposed acquisition of Eaton Hydraulics’ hydraulic business by Danfoss.

Both companies are the world’s leading manufacturers of hydraulic components used to manufacture hydraulic systems for various types of machinery.

The purpose of a hydraulic system is to make a machine move, transferring energy from the point of origin, for example a motor, to the point of use.

Thus, the proposed transaction would eliminate one of the main competitors in this market.

Eaton Hydraulics

Approval is conditional on full compliance with the commitments made by Danfoss.

To address the Commission’s competition concerns, Danfoss offered the following commitments:

First condition

Divestment of parts of Danfoss’ HSU, ESV and orbital engines businesses. These include the Danfoss plants in Wroclaw (Poland), Parchim (Germany) and Hopkinsville (USA).

Second condition

The structural divestment will be complemented by the transfer of Eaton Hydraulics ‘production lines for medium power orbital motors (HP and VIS models), Eaton Hydraulics’ 10 Series production line for HSUs, and production assets for the portfolio. from Eaton Hydraulics ESV, to the Hopkinsville plant.

Third condition

In order to improve the competitiveness of the divestment business, and in addition to the structural divestitures, Danfoss also committed to transferring additional technology from Danfoss and Eaton to the HSUs.

Thanks to these commitments, the divestment business will have a broad portfolio for each of the HSUs, ESVs and orbital engines.

The commitments offered by Danfoss fully address the competition concerns raised by the proposed transaction. Therefore, the Commission concluded that the proposed transaction, as modified by the commitments, would no longer raise competition concerns. The Commission’s decision is conditional on full compliance with the commitments.

Companies and products

Danfoss, based in Denmark, is a global corporation primarily active in the manufacture of components and engineering technologies for refrigeration, air conditioning, heating, motor control and hydraulics used in off-road machinery.

In addition, Danfoss offers solutions for renewable energy, eg solar and wind energy, as well as district energy infrastructure for cities.

Headquartered in Ireland, Eaton Hydraulics is a global corporation active in providing power management solutions for electrical, hydraulic, aerospace and vehicle applications.

Eaton Hydraulics manufactures and sells hydraulic components and systems for industrial and mobile equipment.