By Edwig Ban
The Competition Council announced on Wednesday that it has authorized the operation by which the National Company Romarm SA - Moreni Automechanical Works Company (UAM) and Rheinmetall Landsysteme GmbH set up the company Romanian Military Vehicle Systems SA.
Each shareholder is to hold 50% of the newly created company's share capital, the objective of which is to develop, manufacture and equip the Romanian army with the 8x8 "Agilis" Armored Carrier.
"The competition authority has analyzed this operation and found it does not raise significant obstacles to effective competition on the Romanian market or a substantial part of it, in particular by creating or strengthening a dominant position," the Competition Council announced on Wednesday.
"Previously, the competition authority approved the two companies' request for a derogation from the provisions of the Competition Law, given that the risk of distortion of competition is reduced," officials say.
UAM has as its main object of activity the production of military fighting vehicles, but in recent years it has carried out exclusively activities of maintenance and delivery of spare parts to the Ministry of National Defense, as well as a series of civil industrial production services, respectively structures metal welded.
Rheinmetall Landsysteme GmbH is a German company specializing in the production of armored vehicles and related services such as logistics, spare parts maintenance and maintenance. This company is part of the Rheinmetall Group, an integrated technology group active in the automotive, electronic and defense industries.