PDF《ELSTER》

5 000 million4 (HON EUR

30 300 million, Elster EUR

1 300 million). Each of them has an EU-wide turnover in excess of EUR

250 million (HON EUR […], Elster EUR […]), but does not achieve more than two-thirds of its aggregate EU-wide turnover within one and the same Member State. The notified operation therefore has an EU dimension within the meaning of Article 1(2) of the Merger Regulation. IV. MARKET DEFINITION (10) The Transaction concerns three business sectors: 1) residential heating products, 2) industrial burners and 3) gas up/mid-stream. IV.1. Residential Heating Products IV.1.1. Gas valves (11) In boilers for residential heating systems, gas valves moderate the combustion of the gas-fired boiler by controlling the flow of gas and the gas/air ration in the boiler. IV.1.1.1. Relevant product market definition The Notifying Party'

s view (12) The Notifying Party submits that gas valves for gas-fired residential boiler systems are part of a distinct product market. As regards a possible distinction between gas valves that are used in high efficiency ( HE ) and in standard efficiency ( SE ) residential boilers, the Notifying Party takes the view that both types of gas valves form part of the same product market. While there are some differences related to design, materials used and price, the Notifying Party submits that these differences are minor. Moreover, they argue that there is a sufficient degree of supply-side substitutability.

4 Turnover calculated in accordance with Article 5(1) of the Merger Regulation and the Commission Consolidated Jurisdictional Notice (OJ C95, 16.04.2008, p1).

3 Finally the Notifying Party takes the view that pneumatically controlled gas valves and electronically controlled gas valves are substitutable as they principally perform the same function. According to the Notifying Party, they therefore form part of the same product market. Results of the market investigation and Commission'

s assessment (13) The market investigation results support the view that gas valves for residential boiler systems are part of a distinct product market. The majority of respondents to the market investigation stated that the tasks performed by gas valves for residential boiler systems cannot be performed by any other piece of equipment (for instance by gas valves for other purposes).5 (14) Regarding the possible distinction between HE and SE gas valves for residential boiler systems, the market investigation indicate that C contrary to the Notifying Party'

s view C there is limited demand-side substitutability between HE and SE gas valves. While the majority of responding customers stated that both types of gas valves are generally comparable in terms of their technical characteristics,6 the majority of responding customers also stated that HE and SE gas valves are not comparable in terms of price7 and cannot be used interchangeably in their residential boiler systems.8 Moreover, the majority of responding customers explained that they would not switch from one type of gas valves to the other in case of a permanent price increase by 5-10%.9 (15) With regard to supply-side substitutability, the results of the market investigation are inconclusive regarding the ........