Taiwan’s Fair Trade Commission has given the green light to Walsin Lihwa's acquisition of a significant stake in Mannesmann Stainless Tubes GmbH (MST) through its Italian subsidiary Cogne Acciai Speciali S.p.A. (CAS). The acquisition covers more than a third of MST's shares.
The Commission noted that both Walsin Lihwa and MST are engaged in the production and sale of stainless steel seamless pipes and nickel-based alloy pipes, leading to competition in the market. In addition, the relationship between CAS and MST is characterized by vertical integration as CAS supplies billet products, which are the basic raw materials that MST uses to produce these pipes.
However, as MST operates mainly in the European market, the acquisition is not expected to change Taiwan's market structure or lead to restrictive competition. The Commission also emphasized that the merged company will continue to face competition from both local and international players and therefore the merger is not prohibited.
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