Trelleborg, Sweden – The European Commission has granted approval to Trelleborg’s proposed €1.1-billion acquisition of Mitas' parent company, ČGS holding, the EC announced 10 May.
The European authority focused its assessment on the original equipment manufacturers and new replacement tire markets for use with agricultural equipment.
“The Commission found that Trelleborg and ČGS's agricultural tires focus on different price and quality tiers and were therefore not close competitors,” the EC said in a statement.
Speaking to ERJ, a Trelleborg spokeswoman Karin Larsson said that completion of the deal was expected to take “a few more weeks”.
“The EU was the last of authorities to get approval from and now it is more buyer-seller aspects that need to be finalised before closing the transaction,” said Larsson.
Larsson said it was too early to talk about post-transactions events, when asked about future plans for the Czech tire-manufacturer.
Elsewhere in its report, the EC also found that other strong competitors, such as Michelin and Bridgestone, would continue to exercise a competitive constraint on the merged entity.
“Moreover, Continental and Pirelli have both announced their intention to re-enter the agricultural tire market in the European Economic Area and Indian suppliers such as BKT and Alliance are improving their market positions,” said the commission.