The merger contract between Yokohama and Trelleborg Wheel Systems is under investigation in the UK by the Competition and Markets Authority
Yokohama Merger with TWS delayed by UK Competition Rules
It is standard practise in the UK that company mergers are subject to a consideration by the Competition and Markets Authority (CMA) to ensure fair trading and the prevention of the creation of a monopolistic scenario.
On the 31st January the CMA served notice under Section 96(2A) of the Enterprise Act 2002, published pursuant to Section 107(1)(I) of the Act.
The Notice reads…
The Competition and Markets Authority (CMA) hereby gives notice pursuant to section 96(2A) of the Act that the merger notice provided by Yokohama Rubber Co., Ltd and/or Trelleborg Wheels Systems in relation to anticipated acquisition by Yokohama Rubber Co., Ltd of Trelleborg Wheel Systems Holding AB (the Merger) meets the requirements of section 96(2) of the Act. The initial period defined in section 34ZA(3) of the Act in relation to the Merger will therefore commence on the first working day after the date of this notice, i.e., on 1 February 2023. The deadline for the CMA to announce its decision whether to refer the Merger for a Phase 2 investigation is therefore 28 March 2023.
Invitation to comment: closes on 14 February 2023
31 January 2023: The CMA is considering whether it is or may be the case that this transaction, if carried into effect, will result in the creation of a relevant merger situation under the merger provisions of the Enterprise Act 2002 and, if so, whether the creation of that situation may be expected to result in a substantial lessening of competition within any market or markets in the United Kingdom for goods or services.
To assist it with this assessment, the CMA invites comments on the transaction from any interested party.
These comments should be provided by the deadline set out above.
If there are objections, the investigation moves on to a second stage.