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HgCapital abandons crash-test dummy takeover on EU antitrust worries

HgCapital abandons crash-test dummy takeover on EU antitrust worries

British investment group HgCapital pulled out of a deal combining the world's two largest makers of crash-test dummies after EU regulators said it would create a quasi-monopoly, the European Commission said Thursday.
The EU executive's office confirmed that HgCapital _ owner of No. 1 crash-test dummy producer First Technology Safety Systems, or FTSS _ had withdrawn a request for regulators to approve its takeover of U.S. rival Denton and had terminated a sales and purchase agreement.
As a result, the Commission said it had closed an investigation into the effects of the deal that it had launched on May 30.
Antitrust officials were worried that the two companies would have controlled most of the global supply of crash-test dummies used to test new cars and improve the safety of existing models.
They said they were also concerned because competitors had signaled the possibility that HgCapital/FTSS could cut off access to information that would help them develop computer-simulated dummies.
FTSS is headquartered in Plymouth, Michigan, while Denton is based in Milan, Ohio.
The two control almost all worldwide sales of anthropomorphic testing devices purchased by carmakers, regulators and independent testers to evaluate the affects of car crashes on human passengers.


Updated : 2021-10-18 08:58 GMT+08:00