EU to investigate Eaton’s $3.3 billion sale of hydraulics unit to Danfoss

BRUSSELS (Reuters) – EU antitrust regulators opened an investigation on Monday into power management company Eaton’s $3.3 billion sale of its hydraulics business to Danish industrial company Danfoss, saying the deal may reduce competition.

As both are leading manufacturers of hydraulic components for mobile machinery globally, the deal would remove one of the main competitors, the European Commission said in a statement.

“The transaction may lead to a reduced choice in suppliers, as well as higher prices, for certain hydraulic components for mobile applications, including hydraulic steering units, electrohydraulic steering valves, and orbital motors,” the EU competition enforcer said.

It added that it had until Feb. 3 to take a decision.

(Reporting by Foo Yun Chee)