Acquisition of erfal – a manufacturer of privacy and sun protection products – by Hunter Douglas abandoned due to antitrust concerns

Summary:

Hunter Douglas GmbH, a global system manufacturer for interior solar shading, has withdrawn its application to acquire erfal GmbH & Co. KG, a German insect and solar protection product manufacturer, due to competitive concerns raised by the German Federal Cartel Office (Bundeskartellamt). The office had reason to believe that Hunter Douglas' proposed acquisition could lead to a dominant market position and would enable the company to harm its German customers, who are also competitors to erfal, in order to strengthen its own market position. Market participants have expressed significant concerns about the proposed acquisition, and the cartel office found that German manufacturers are largely dependent on Hunter Douglas for systems and do not have sufficient alternatives to switch to if needed, which would limit the ability to effectively restrict Hunter Douglas' market power.