Appeal against the European Commission's decision
On October 10, 2001, the European Commission, with the Common Market, ruled that the planned merger between Schneider Electric and Legrand was incompatible.
The Schneider Electric Board of Directors has considered the findings of the investigation conducted by its Audit Committee regarding the conditions which prevailed during the procedure. It has decided to appeal against the Commission’s decision. The appeal was lodged today with the Court of First Instance of the European Communities in Luxemburg.
This appeal is justified by the numerous irregularities noted during the merger procedure which, in breach of the key principles of community law (particularly rights of the defendant, rightful trust), caused serious prejudice to Schneider Electric.
The appeal also contests the Commission’s analysis of the relevant markets and the weight of the market players (competitors and distributors). Finally, it refutes the negative assessment made by the Commission as to the quality of the solutions proposed by Schneider Electric in response to competition issues resulting from the planned merger.
Schneider Electric is moreover working on a solution to sever the capital bonds between Schneider Electric and Legrand.