EU paves way for Chinese Pirelli takeover

[unhappycamper]

http://www.dw.com/en/eu-paves-way-for-chinese-pirelli-takeover/a-18558181

The state-owned Chinese chemicals group has received a green light from the European Commission to take over Italian tire maker Pirelli. The acquisition could help the iconic tire brand gain more traction in Asia.

EU paves way for Chinese Pirelli takeover
Nils Zimmermann
02.07.2015

The road is clear for a Chinese takeover of iconic Italian tire maker Pirelli, after EU antitrust regulators on Thursday announced they had approved China National Chemical Corporation's (ChemChina) 7.1 billion-euro ($7.9-billion) acquisition bid.

"The Commission's investigation found that the proposed transaction would 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 European Commission (EC) said in a statement.

The go-ahead comes some four months after the state-owned, Beijing-based chemical company announced plans to buy a 26.2-percent stake in the world's fifth-largest tire maker, which was founded 143 years ago in Milan. The joint venture, spearheaded by ChemChina subsidiary China National Tire & Rubber, then also expressed its intention to secure a majority stake later on.

"All parties involved are working to finalize the other closing conditions 'for the Pirelli deal' in the shortest possible timeframe," ChemChina said in a statement.