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UOHS approves merger of Gumotex & TANEX PLASTY
Jul '08
Office for the Protection of Competition of the Czech Republic (UOHS) approved the merger of Gumotex Automotive, s.r.o. (limited company) and TANEX, PLASTY a.s. Gumotex Automotive can buy part of the production of Tanex company which is targeted on the production of polyurethane part and expanded polypropylene parts for automotive industry.

Gumotex Automotive is subsidiary of GUMOTEX, shareholding company, which in the Czech Republic produces and processes plastic materials, supplies plastic and rubber-textile parts for automotive industry, plastic boats, inflatable mattresses and equipment for water sports. Via its shares in Gumotex Automotive is GUMOTEX also active in the production of plastic, rubber and vulcanized rubber products for automotive industry (for example fillings of car head rests).

Another GUMOTEX subsidiary - ZPV Rožnov s.r.o. – produces plastic, rubber and vulcanized rubber products for automotive industry as well (for example car carpets). Last subsidiary - Purtex Praha, s.r.o. – produces plastic, rubber and vulcanized rubber products for furniture industry, for example bed mattrasses or upholstery. Products and services of the GUMOTEX group are mainly focusing on the Czech market but they are also delivered to other countries of the European economic area, as Germany, Belgium, France or Poland.

Part of the Tanex production acquired by the merger is focused on plastic products for automotive industry – parts for car interiors and exteriors, for example fillings of car head rests, seats, doors, also floor and roof insulting and filling parts, handles of gear-levers, small parts of interiors or fillings of bumpers for passive safety. Besides the Czech Republic these products are also supplied to other EU countries, such as Germany, Poland, Hungary, Slovakia, Austria, Netherlands and UK.

Impacts of the merger on the European economic area market of fillings of car head rests (on which both the merging parties are active) will be negligible as market shares of the merging parties are just in percents. On other above-mentioned markets is active always only one of the merging parties and have only low market share as well.

On the European economic area market of plastic parts for car interiors there are also other all-European competitors, for example subsidiaries of transnational groups Johnson Controls Czech s.r.o., Magna Automotive, GRUPO ANTOLIN, Proseat Mladá Boleslav s.r.o., Lear Corporation, Fehrer Bohemia s.r.o. or Faurecia.

Moreover, significant economic and financial power of customers for plastic parts (that is producers of vehicles) must be also considered. Their power safeguards sufficient level of competition.

The UOHS thus concluded that the merger will not increase the market power of merging parties which might result into significant distortion of competition and approved the merger without conditions.

Office for the Protection of Competition of the Czech Republic

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