Competition and Markets Authority opens Yokohama/Trelleborg Wheel Systems merger investigation

The Competition and Markets Authority (CMA) has opened an investigation into the proposed merger of Yokohama Rubber Co. Ltd of Trelleborg Wheel Systems Holding AB (TWS). Writing in a statement published on 31 January, CMA officials stated that it is “pursuant to section 96(2A) of the Act that the merger notice provided by Yokohama [and TWS]…” meets “the requirements of section 96(2) of the [relevant] Act.” In other words, the CMA investigation is a formality for a merger of this kind.

Specifically, the CMA is considering “whether it is or may be the case that this transaction, if carried into effect, will result in the creation of a relevant merger situation under the merger provisions of the Enterprise Act 2002”. The reason? To check if the merger will “result in a substantial lessening of competition within any market or markets in the United Kingdom for goods or services.”

CMA reports that the case gets underway from the first working day after the date of this notice, namely 1 February 2023. The deadline for the CMA to announce its decision whether to refer the Merger for a Phase 2 investigation is therefore 28 March 2023.

The CMA has invited comments on the transaction from any interested party. The deadline for those is 14 February.