Brussels, 11/06/2007 (Agence Europe) - On 8 June, the European Commission cleared the proposed acquisition of Matador Rubber, a Slovak producer of car tyres and conveyor belts, by German company Continental. After examining the operation, the Commission concluded that the transaction would not significantly impede effective competition in the European Economic Area (EEA) or any substantial part of it.
The Commission examined the competitive effects of the proposed merger in the areas of tyres and heavy conveyor belts, where both parties are active. In the tyre business, Matador is one of the smaller players focusing on budget tyres mainly in the Central-Eastern European region. The Commission's investigation revealed that the new entity would face several strong, effective competitors, who have a strong foothold in the market. In addition, the Commission found that the combination of the parties' distribution activities, particularly in the Czech Republic and Slovakia, would not prevent competitors from reaching consumers, who would, for their part, continue to benefit from a broad choice of competing tyre brands.
Continental has a strong position, but the Commission concluded that given the very limited size of Matador, the transaction would not lead to any adverse effects on competition. Following the merger, customers would continue to be able to choose heavy conveyor belts from a number of alternative suppliers. (ol)