ing to DIN Types HK HK HK BK and BK Ty B4-VV16-B Bevel-helical gear units B4

Flender/Flender Gear Units/Bevel-helical gear units B4

te des cription of Siemenss activities in South Africa, see Pages 3 -4 of the Commission' Report. 5 For more detail on the difference between mechanical and electrical power transmission see Pages 7 - 7 of the record. 6 According to the merging parties, Flender does have minor activities in electrical power transmission equipment in Europe but is not active in this market in South Africa. 7 See page 8 of the Commission' Report. 3 1. The Commission identified the following upstream markets: supply of electric motors, gears, geared motors, drives and of industrial drive applications. Th downstream market is the market for the provision of complete drive solutions. 1. The Commission examined the post merger market shares in the upstream markets and concluded that there would be no risk of reduced competition in any of the markets concerned because there are alternative sources of supply and the merged entity faced several strong internationally based competitors.8 In the downstream market for the provision of complete drive solutions, the Commission considered the characteristics and dynami cs of the market and concluded inter alia that: ??The various component markets are highly competitive; ??Contracts for the supply of components at all market levels and for the construction of the final drive solution are based on tender and bid process - market shares are therefore lumpy and vary depending on which bidder is rewarded the contract; ??The specifications and design of the system rests with the customer who will decide on the best bid put forward - Customers therefore exercise significant count ervailing power; ??Finally, the merged entity would be new entrant and would be competing against other fully integrated competitors such as ABB, SEW, Bearing Man and Alstom. Conclusion 1. Having considered the merging parties submissions and the Competit ion Commissions report, we are satisfied that the transaction will not su