London – China National Tire & Rubber Co., a subsidiary of the China National Chemical Corp.(ChemChina), has been granted approval by European Union antitrust bodies to proceed with its bid for Italian tire-maker Pirelli.
A filing on the website of the European Commission on 1 July stated that the transaction concerned the proposed acquisition of sole control of Pirelli & C. by CNRC.
The European Commission said its investigation “found that the proposed transaction would raise no competition concerns as the market share increments are modest, the two companies are not close competitors and customers will continue to have an adequate number of alternative suppliers in all markets.”
“The acquisition will be effected through a number of steps, including an initial acquisition by CNRC of Camfin SpA’s non-controlling 26.193% stake in Pirelli, immediately following which CNRC will launch a mandatory tender offer for the remaining shares of Pirelli,” said another EC filing, dated 28 May.
After the successful completion of the tender offer, the filing added, CNRC will exercise sole control over Pirelli.
Pirelli ranks fifth on ERJ’s list of global tire manufacturers.
The plan to purchase Pirelli was first announced in March and at €15 per share in the Milan the company is valued at around €7.1 billion.