Volkswagen and Ford jointly acquired a refrigerant for vehicle manufacturing, a concentration approved by Mexico‘s Economic Competition Commission (Cofece).
Initially, on December 7, 2022, Volkswagen AG (VW) and Ford Motor Company (Ford) notified Cofece of their intention to carry out a concentration in this regard.
The notified operation consists of the implementation of a collaboration agreement between VW and Ford for the joint acquisition of refrigerant type R1234YF (Product).
This refrigerant will be jointly supplied for use as an input in their respective vehicle manufacturing activities (Second Cooperation Agreement).
The joint procurement activities will also have effects in several countries.
Volkswagen and Ford
The transaction does not have a non-competition clause.
In order to implement the Second Cooperation Agreement, both companies will share certain information regarding current and potential suppliers, specifications and expected volume.
From the analysis performed by Cofece, it is considered that, if the notified transaction were to be carried out, it would have little probability of affecting the process of free competition and economic competition.
Cofece is in charge of preventing concentrations whose purpose or effect is to diminish, damage or impede competition and free concurrence.
In addition, it is empowered to challenge and sanction those concentrations and legal acts derived from them, whose purpose or effect is to diminish, damage or impede competition and free concurrence in the production, distribution and commercialization of goods and services in the Mexican Republic.
Therefore, it may authorize concentrations that are not contrary to the process of competition and free concurrence in terms of the Federal Law of Economic Competition.
Cofece is the autonomous constitutional body of the Mexican State, which has its mandate established in Article 28 of the Mexican Constitution.
This Commission is responsible for overseeing, promoting and guaranteeing competition and free concurrence in the country, so that markets function efficiently, in favor of consumers.
