The precision motion control specialist Moog is buying Robert Bosch`s radial piston pump business for DM14.4m (£4.4m) in cash and DM3.6m (£1.1m) in assumed pension liabilities. The deal removes one of the European Commission`s main worries about the proposed merger of Bosch Automation and Mannesmann Rexroth.

Earlier this year, the Commission expressed "serious reservations" about the proposed Bosch-Rexroth merger because it felt that Rexroth`s axial pump business competed directly with Bosch`s radial pumps operation, with both companies having strong positions in the market. Merging the two operations would have created a dominant player in this part of the hydraulic pumps market.

Moog says that the Commission`s reaction triggered its purchase. It points out the Bosch pumps are often used in combination with its Moog`s industrial servo-valves. One of the most important markets for the Bosch pumps is injection moulding machines which is also an important market for Moog.

"This product line fits perfectly with our technology emphasis and broadens the product base which we can offer our major customers," says Harald Seiffer, general manager of Moog`s German business.

The Bosch pumps business has annual sales of around $20m (£14m). Moog will continue to operate its manufacturing plant in Nuremberg and will integrate Bosch`s engineering and application staff into its Böblingen site. In all, about 135 employees will transfer to Moog. The deal is expected to be completed by the end of December or early next year.