Trelleborg says UK investigation into Yokohama deal “normal procedure”

London – Trelleborg AB said that a recent investigation by the UK competition and markets authority (CMA) into its €2.1 billion deal to divest Trelleborg Wheel Systems is “normal procedure”.

“This is normal procedure; the buyer (in this case Yokohama) files [application] and then the authorities start their reviews,” said Trelleborg in a written statement to ERJ.

The comments followed a 31 Jan announcement by the CMA saying said it was considering whether the transaction would result in “a substantial lessening of competition within any market or markets in the UK for goods or?services.”

In response, Trelleborg said its joint assessment with Yokohama was that “there are no reasons why this deal should not be approved.”

According to Trelleborg, merger clearances have already been obtained in 70 countries, also in the large markets like the US.

Approvals from two markets, the EU and the UK, are still outstanding, Trelleborg added.

“The UK has thus now started this last phase of the process and the same procedure is now also starting in the EU,” the Swedish group said.

Interested parties in the UK have been invited to provide comments on the transaction by 14 Feb. 

The statutory deadline for CMA’s decision is 28 March.