On Monday 30 April, the European Commission gave its conditional approval to the purchase of Mefro Wheels, a producer of steel wheels, by one of its competitors, Accuride, subject to the divestment of assets by the latter.
The transaction, which was notified to the Commission on 12 March, led to concerns on the part of the institution regarding competition in the steel wheels sector. Following an investigation, it was confirmed that as originally notified, the acquisition would have brought about a competition distortion on this market, due in particular to the combined size of the two entities (more than 60% of the market) and lack of influence of their competitors on the European market.
To respond to these concerns, Accuride proposed to sell its European branch, Gianetti Ruote, to an appropriate purchaser that is capable of bringing effective competition to bear against the future merged entity. Observing that this corrective measure would allow three suppliers of steel wheels for buses and lorries to remain on the market, and therefore maintain a certain competitive pressure, the Commission found that the transaction was compatible with EU competition rules. (Original version in French by Lucas Tripoteau)