Bundeskartellamt clears merger between va-Q-tec AG and EQT (Envirotainer)

The Bundeskartellamt has cleared plans by EQT Fund Management S.à.r.l., Luxembourg, to acquire shares in and sole control of va-Q-tec AG, Würzburg. The target company offers products and solutions in the area of thermal insulation and cold chain logistics. Private equity firm EQT already has control of the Swedish supplier Envirotainer AB, Sollentuna, Sweden. Envirotainer develops, manufactures and leases temperature-controlled containers that are primarily used in the air transport of biopharmaceuticals.

Andreas Mundt, President of the Bundeskartellamt: “We conducted very thorough investigations in this case and surveyed about 180 customers and competitors of the merger parties, mostly located abroad. There is no question that by merging with va-Q-tec, Envirotainer will expand its strong market position. Some market participants have expressed competition concerns. However, our investigations ultimately cannot prove that the requirements for a prohibition of the project are met.”

The Bundeskartellamt in particular conducted an in-depth investigation into the lease of temperature-controlled containers for air transport of pharmaceuticals, as both companies operate in this segment and this segment is governed by special conditions that might justify the definition of such a market.

The merger will strengthen Envirotainer’s market position. Besides gaining market shares from va-Q-tec, Envirotainer will also be able to profit from additions to its product portfolio in the form of technologies, container sizes and the sale of packaging solutions, from an expansion of its network of stations for handling the delivery and return of leased containers, and from va-Q-tec’s customer base, in particular air carriers.

Nevertheless, the Bundeskartellamt’s extensive investigations and a market survey of the relevant competitors and customers, which are mainly located abroad, ultimately did not find that the requirements for a prohibition of the project are met. Moreover, the market is characterised by innovation and growth, and has seen successful market entries of new competitors in the past. Besides, the major pharmaceutical and logistics companies represent buyers with a high degree of bargaining power on parts of the opposite market side.