In the aftermath of June’s Brexit referendum, more than a few voices called for the UK government to reconsider its decision to leave the European Union. And while the new Prime Minister is adamant that “Brexit means Brexit,” we retain the option of later rejoining the club should we wish to. The same applies within the tyre industry, as we recently witnessed with Germany’s Continental AG. More than a decade after its ‘Agrexit’, the company will soon once again produce agricultural tyres under its main Continental brand name.
Trelleborg has finalised its acquisition of leading agricultural, industrial and specialty tyre manufacturer, CGS Holding as. The total cash consideration amounted to approximately 10.9 billion Swedish krona (approximately £0.91 billion) on a cash and debt-free basis. CGS is headquartered in the Czech Republic and generated sales of approximately SEK 5.6 billion (£0.47 billion) in 2015 with an operating margin of 16.5 percent. The Czech company also produces engineered polymer solutions.
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.”
Trelleborg has signed an agreement to acquire the Czech Republic’s CGS Holding a.s. for approximately 10.9 billion Swedish Krona (£830 million) on a cash and debt-free basis. The privately-owned company is active in the agricultural and specialty tyre business segments, including the strong Mitas tyre brand, as well as engineered polymer solutions. Closing of the transaction is subject to approvals from relevant competition authorities and is expected to be completed in the first half of 2016.