By Shahrzad Pourriahi, Crain News Service
LONDON (July 2, 2015) — European Union (EU) antitrust bodies have approved China National Tire & Rubber Co.'s proposed takeover bid for Italian tire maker Pirelli & C. S.p.A.
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 Commission said the proposed transaction was examined “under the ordinary merger review procedure.”
China National Tire, a unit of China National Chemcial Corp. (ChemChina), launched its bid for control of Pirelli on March 22, striking a deal to buy a 26.2-percent share in Pirelli & C. S.p.A. from Italy's Camfin S.p.A.
The transaction, valued at about $2 billion, was subject to approvals by the “competent Chinese and foreign governmental authorities,” ChemChina said at that time.
ChemChina intends to make a joint tender offer with Camfin and other investors for the “remaining stake” in Pirelli, a process acknowledged by the EC in its filing.