Brussels, 29/05/2007 (Agence Europe) - On Tuesday 29 May, the European Commission cleared the proposed acquisition of the US company, Bandag, by Bridgestone Americas Holding Inc, also of the US. Bridgestone is active worldwide in the tyre and rubber sector. Bandag sells tread and re-treading equipment to re-treading businesses, which operate as Bandag franchisees. Re-treading is the process that extends the life cycle of truck tyres by applying new tread to a worn truck tyre provided that the casing is still in sound condition.
Bridgestone's stated strategy is to combine these two major businesses in order to compete effectively for more sophisticated truck fleet customers requiring integrated tyre management services.
The Commission, which was concerned about horizontal overlaps in the re-treading sector, examined the proposed merger but concluded that overlaps were limited and that the new entity would continue to face strong, effective competition from companies such as Michelin, Goodyear and Kraiburg. (cd)