Defence sector: Acquisition of the defence business of Texelis by the KNDS group cleared

The parties to the transaction

France-based company Texelis provides mobility solutions for the defence and transport sectors. Initially part of Arquus (formerly Renault Trucks Defense), Texelis’ defence business specialises in land mobility and the design of solutions for armoured vehicles. The newly-created entity Texelis Defense will take over Texelis’ defence business.

The KNDS group, formed from the merger of Krauss-Maffei Wegmann and Nexter, is active in the manufacture of military land systems. Its subsidiary KNDS France specialises in the design and manufacture of armoured vehicle systems (e.g. wheeled and tracked vehicles) and combat systems. It is also active as a supplier and manufacturer of artillery and ammunition. It develops and delivers armoured systems and weapons and ammunition systems for the French government, while also supplying other allied armed forces and third-party countries.

KNDS is part of the Scorpion programme, which aims to modernise certain French army equipment. As such, it is involved in the manufacture of Griffon and Jaguar vehicles alongside its partners Arquus and Thales, as well as the upgrade of the Leclerc main battle tank.

The temporary business grouping (groupement momentané d’entreprise – GME) comprising Texelis and KNDS France supplies the French army with the mobility solution for its new 4x4 vehicle, the Serval. Texelis provides the mobility platform, while KNDS France manufactures and assembles the vehicles and supplies the associated equipment.

The transaction is not likely to harm competition

On the basis the transaction is not likely to harm competition given the absence of any overlap between the parties’ activities and any risk of market foreclosure for competitors, the Autorité cleared the transaction unconditionally.