B2CH-15-C it sizes to Technical specifications continued Bevel-helical gear Reduction Box B2

Flender/Flender Gear Units/Bevel-helical gear Reduction Box B2

mechanicalgears. Impactoncompetition HorizontalAssessment 7.InSouthAfrica,bothmergingpartiesareinvolvedinthebroadmarketforpower transmission.HoweverFlendersuppliesmechanicalpowertransmissionequipment (including industrial gears and geared motors) and Siemens supplies electrical powertransmissionequipment 5(includingmotorsanddrives). 6 8.AccordingtotheCommission,therearenooverlapsintheactivitiesofthemerging parties,becausealthoughbothSiemensandFlenderparticipateintheprovisionof incompletedrivesolutions,theybidforthesupplyofdifferentproductcomponents. ...Siemenswillbidforthesupplyofdrivesandelectricmotors(components)or foracombinationofbothand [thereforewill] competewithothermotoranddrive suppliersforthetender.Flenderwillbidforthesupplyofgearsorgearedmotors (components)ordriveapplicationsystemswillcompeteagainstsuppliersinthese marketsforthetender 7 VerticalAssessment supplierforvariousreason.Thesearemaintenanceissuesaswellasprice.Theyarebetterabletoobtain discountsfromasuppliersuchasSEWthatwillbeabletosupplyallofthecomponentsrequired At page3ofthetranscript. 4ForacompletedescriptionofSiemenssactivitiesinSouthAfrica,seePages3oftheCommission' Report. 5FormoredetailonthedifferencebetweenmechanicalandelectricalpowertransmissionseePages 7oftherecord. 6Accordingtothemergingparties,Flender doeshaveminoractivitiesinelectricalpowertransmission equipmentinEuropebutisnotactiveinthismarketinSouthAfrica. 7Seepage8oftheCommission'sReport. 9.Thetransactiondoesgiverisetocertainverticalissues,aspostmergerthemerged entitywillcompetefortheprovisionofacompletedrivesolutionthatrequiresa combination of various components. Flender is supplier of gears and drive applicationsystemswhileSiemenssupplieselectricmotorsanddrives.Accordingto theCommission,theseareallcomponentsthatmayberequiredfortheproduction ofthefinaldrivesolution. 1.The Commission identified the following upstream markets: supply of electric motors, gears, geared motors, dri