The European Commission has approved under the EU Merger Regulation the proposed acquisition of Czech tyre producer ČGS by Trelleborg, a Swedish rival. Trelleborg is a manufacturer and supplier of rubber products, including agricultural, forestry and industrial tyres, polymer-based solutions, seals, and anti-vibration systems. ČGS is a Czech company that also manufactures and sells similar rubber products. The Commission focused its assessment on the original equipment manufacturers and new replacement tyre markets for use with agricultural equipment in which the parties' activities had the most significant overlaps. The Commission found that Trelleborg and ČGS's agricultural tyres focus on different price and quality tiers and were therefore not close competitors. The Commission 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. In light of the above and in the absence of any significant concerns expressed in the market investigation, the Commission concluded that the transaction would raise no competition concerns. More information is available on the Commission's competition website, in the public case register under the case number M.7864.
