China’s state-owned National Chemical Corp (ChemChina) took over Italy’s Pirelli, the fifth-largest tire maker, after European Union antitrust regulators approved its proposal on Thursday, reports Europe Online Magazine.
Through its subsidiary, China National Tire & Rubber, ChemChina produces radial and off-road tires.
“The proposed transaction [will] 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 EU‘s executive arm, the European Commission, said.
According to Europe Online Magazine, ChemChina accounced plans to acquire a quarter of Pirelli shares in March, therefore securing a majority stake, through a 7 billion euros, or $7.76 billion, deal.
