State-owned ChemChina announced plans in March to acquire a quarter of Pirelli shares, and secure a majority stake later on, in a deal that valued the Milan-based company at more than 7 billion euros ($7.76 billion).
“The proposed transaction will raise no competition concerns as the market share increments are modest, the two companies are not close competitors, and customers will continue to have an adequate number of alternative suppliers in all markets,” the European Commission said.
Following the assessment, “all parties involved are working to finalise the other closing conditions for the Pirelli deal in the shortest possible timeframe,” ChemChina said.
Founded 143 years ago, Pirelli is the world’s fifth-largest tyre maker, and market leader for high-end cars.
It is currently the monopoly supplier for Formula One racing teams.
ChemChina, through its subsidiary China National Tire & Rubber, is the leading Chinese domestic producer of radial and off-road tyres, and the country’s largest maker of automotive brake hose and high-strength conveyor belts. — dpa
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