All-clear for Yokohama acquisition of Trelleborg Wheel Systems
29 Mar 2023
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UK decision means €2.1bn deal has now gained approval 'from all relevant competition authorities'
Trelleborg, Sweden - Yokohama Rubber Co. (YRC) has received clearance from all relevant authorities to acquire Trelleborg's business area Trelleborg Wheel Systems (TWS).
Approval from the UK Competition and Markets Authority on 28 March paved the way for the completion of the SEK22 billion (€2.1 billion) deal in the second half of the year, said Trelleborg.
The deal, announed in March last year, was initially planned for completion at the end of 2022 but was delayed due to outstanding approvals from the EU and the UK.
The deal builds on YRC’s mid-2016 purchase of off-road tire maker Alliance Tire Group (ATG), which has since bolstered group sales by around 20%.
TWS will is expected to help strengthen YRC’s commercial tire business in terms of product lineup, cost, service, and digital transformation.
In fiscal 2021, TWS sales totalled SEK10 billion, accounting for about 30% of Trelleborg AB’s consolidated revenue, noted YRC.
Over the past 10 years, it added, TWS’ had expanded turnover 2.6-fold and more than tripled earnings.
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