Danfoss wins conditional EU okay for $3.3 billion buy of Eaton’s hydraulic unit

Danfoss building entrance is seen at the industrial park in Monterrey
FILE PHOTO: Danfoss building entrance is seen at the industrial park in Monterrey, Mexico February 3, 2017. REUTERS/Daniel Becerril

March 18, 2021

BRUSSELS (Reuters) – EU antitrust enforcers cleared on Thursday Danfoss’ $3.3 billion acquisition of Irish power management company Eaton’s hydraulic business after the Danish industrial company agreed to sell some units to address competition concerns.

Danfoss and Eaton, leading players in the global hydraulic components market, announced the deal in January last year.

The European Commission said Danfoss’ concessions will allay concerns that the deal may push up prices and reduce competition.

Danfoss will sell some businesses in Germany, Poland and the United States, while some Eaton production lines of certain components will be transferred to the U.S. facility due to be sold off. Key technologies will also be transferred.

(Reporting by Foo Yun Chee)