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Ingersoll-Rand's Trane purchase approved

THE European Commission has cleared, under the EU Merger Regulation, the proposed acquisition of Trane by Ingersoll-Rand (both US companies).
Ingersoll-Rand is active in three key areas: climate control, providing solutions for customers to transport, preserve, and display temperature-sensitive products, industrial technologies to enhance customers' industrial and energy efficiency, and security technologies.

Trane provides air conditioning equipment, including refrigerant compressors, services and solutions for the commercial, residential, institutional and industrial AC industry.

The commission's investigation found that the parties' activities do not overlap but that there is a potential issue concerning refrigerant compressors.

Refrigerant compressors, produced by Trane, are used to raise the pressure of refrigerant gas in the process of temperature control, whereas air compressors, manufactured by Ingersoll-Rand, cannot be used in temperature control units because the seals and compression ratios are significantly different in refrigerant applications. Refrigerant compressors are used in AC systems for buses and trams and in refrigeration equipment, where Ingersoll-Rand is active.

However, Trane's activities with regard to refrigerant compressors are very limited. Trane only sells compressors to third party dealers or end customers for the purpose of repairing and maintaining its own AC systems but not to original equipment manufacturers .

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