EC clears Trelleborg acquisition of ČGS Holding
Approval has been given for Sweden’s Trelleborg AB to acquire ČGS Holding a.s., parent company of Czech tyre maker Mitas. In a statement issued this week, the European Commission shared that its assessment of the deal focused on the extent to which the two companies’ original equipment and aftermarket activities overlapped. The Commission found that Trelleborg and Mitas agricultural tyres “focus on different price and quality tiers” and are therefore “not close competitors.”
The European Commission’s assessment also found that other strong competitors such as Michelin and Bridgestone will continue to exercise a competitive constraint on the merged entity. Moreover, Continental and Pirelli have both announced their intention to re-enter the agricultural tyre market in the European Economic Area, and Indian suppliers such as BKT and Alliance are improving their market positions.
For the above reasons, and as no significant concerns were expressed during its market investigation, the Commission concluded that the transaction would “raise no competition concerns.”
Trelleborg announced in November 2015 that it had signed an agreement to acquire ČGS Holding for approximately 10.9 billion Swedish Krona (£830 million).