The European Commission has taken the preliminary view that GE provided “incorrect or misleading information” during a review of the €1.5bn planned acquisition of LM Wind.
If the commission eventually concludes that “GE intentionally or negligently supplied incorrect or misleading information” a fine of up to 1% of the company’s annual worldwide turnover could be imposed.
The commission has sent GE a so-called ‘Statement of Objections’ outlining initial findings of an investigation into the merger review.
It said: “GE failed to provide information to the commission concerning its research and development activities and the development of a specific product.
“The missing information had consequences not only for the commission’s assessment of GE’s acquisition of LM Wind but also for the assessment of Siemens’ acquisition of Gamesa.
“The information was necessary to properly assess, in both cases, the future position of GE and the competitive landscape on the markets for wind turbines.”
GE withdrew its notification of the merger with LM Wind on 2 February before re-notifying the same transaction on 13 February, the commission said.
The second notification included the information on the future product, which had not been in the original one, and “allowed the commission to have a full picture of the wind turbines market”, it said.
The commission subsequently cleared the re-notified GE-LM transaction on 20 March, having cleared the Siemens Gamesa deal on 13 March.
GE said in response: “We believe we acted in good faith to meet the EC (European Commission) disclosure requirements and there was no intent to mislead.
“When informed of the EC’s concerns, we acted quickly and openly to resolve the issue.”
It added that the statement of objections is part of the commission investigation process and “does not prejudge the final outcome” of the procedure.
“We have the opportunity to respond to it and we will continue our constructive cooperation with the commission,” GE said.
Image: European Commission building (Amio Cajander)
EU takes aim at GE/LM deal
Commission issues preliminary view on its investigation into €1.5bn merger
By EBS