EU clears Conti's purchase of Matador

Brussels - The European Union (EU) Commission has approved Continental AG's plan to buy majority control of Slovak Republic-based Matador AS's tyre, conveyor belt and rubber machinery operations.

Continental disclosed its plan in April to buy 51-percent control of Matador, which has 4770 employees and reported sales of $619 million last year. The companies have not disclosed the value of the offer. Conti also stated earlier it intends to expand passenger and light truck tyre production at Matador's factory in Puchov, Slovak Republic, by more than 27 percent to 7 million units a year.

Matador and Conti already are involved in a 76/24 truck tyre joint venture at Puchov. The deal also would include Matador's conveyor belt production there and its share of a joint venture tyre plant in Omsk, Russia.

“This is an important step towards our goal of forging a stronger link to our extremely successful joint venture partner,” said Conti Executive Board Chairman Manfred Wennemer. “At the same time it enables us to expand our production and operations base in Eastern Europe.”

Matador CEO Štefan Rosina said, “For us it opens up possibilities to develop further our automotive business in line with our strategy regarding new projects with automotive suppliers.”

In its commentary on the proposed deal, the EU Commission said “…the transaction would not significantly impede effective competition in the European Economic Area or any substantial part of it.”

From Tire Business (A Crain publication)

Press release frm Continental