Trelleborg’s acquisition of Czech tyre manufacturer cleared by European Commission
The CZK 31.4 billion (SEK 10.9 billion) transaction was announced by Trelleborg in November 2015. The Commission said that Trelleborg and ČGS's agricultural and forestry tyres focused on different price and quality tiers and were therefore not close competitors. Other strong competitors such as Michelin and Bridgestone will continue to exercise a competitive constraint on the merged entity, the EC’s report reads, adding that both Continental and Pirelli announced their intention to re-enter the European agricultural tyre market and Indian suppliers such as BKT and Alliance are improving their Nordic Chamber Report 29 April – 13 May 2016 market positions. The merged company will have a workforce of 23,000, with Trelleborg becoming the global leader on the agricultural tyre market.