EC approves acquisition of Mefro Wheels by Accuride
Staff Writer |
The European Commission (EC) has approved, under the EU Merger Regulation, the acquisition of steel wheels manufacturer Mefro Wheels by its competitor Accuride.
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The decision is conditional on the divestment of Accuride's European business Gianetti Ruote.
Accuride and Mefro Wheels are both components suppliers for the automotive industry, in particular of steel wheels for buses, trucks and trailers.
The Commission assessed the impact of the proposed transaction on effective competition in the market for steel wheels for buses and trucks in the European Economic Area (EEA).
The Commission's investigation confirmed that the proposed transaction, as originally notified, raised the following competition concerns:
- Accuride and Mefro Wheels would have a combined market share of more than 60%, and only one other supplier, Maxion, would remain in the market to compete with the merged entity.
As a result, the transaction would have created the largest player on the market and would have significantly limited the choice of suppliers for customers, potentially limiting their capability to resist price increases.
- Suppliers not currently present in Europe do not exert sufficient competitive constraint and are not expected to become a significant competitive force in the near future.
To address the Commission's concerns, Accuride offered to divest its European business Gianetti Ruote, an Italian company, to a suitable buyer.
The proposed remedy maintains the competitive landscape existing before the transaction, with three independent suppliers of steel wheels for buses and trucks.
Therefore, the Commission concluded that the proposed transaction, as modified by the commitments, would no longer raise competition concerns. The decision is conditional upon full compliance with the commitments.
Mefro Wheels is a German company that manufactures and supplies steel wheels for passenger cars, light commercial vehicles, commercial vehicles and agriculture and construction machinery.
Accuride is a U.S. company that manufactures and supplies steel and aluminium wheels and wheel-end components such as brake drums, disc brake rotors and slack adjusters for trucks, buses and trailers as well as specialty and military vehicles.
In the EEA, Accuride supplies steels wheels for trucks, buses and trailers through its majority-owned Italian subsidiary Gianetti Ruote. ■