LONDON—The United Kingdom's Competition and Market Authority has launched an investigation into the 2022 agreement between Trelleborg A.B. and Yokohama Rubber Co. Ltd. that would result in the Japan-based firm acquiring Trelleborg Wheel Systems.
According to a statement issued by CMA, the investigation is intended to evaluate the impact of the $2.3 billion deal, particularly as it relates to competition within the market.
"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 and, if so, whether the creation of that situation may be expected to result in a substantial lessening of competition within any market or markets in the United Kingdom for goods or services," CMA said in a Jan. 31 statement.
Trelleborg, meanwhile, said the investigation is part of a "normal procedure" and should not derail the sale of TWS.