Tatra Trucks, one of Europe's leading manufacturers and suppliers of military vehicle chassis and a strategic supplier to the defence industry, has submitted observations to the European Commission regarding the proposed acquisition by STV INVEST of a 50% stake in Promet Tools, which holds a 35% shareholding in Tatra Trucks. The company has requested that the transaction be subject to a standard competition review rather than the simplified merger procedure. As a majority shareholder in Tatra Trucks, CSG supports the company's request for a standard competition review of the proposed transaction. In CSG's view, the issue extends beyond shareholder matters and concerns the protection of commercially sensitive information, corporate governance and fair competition within the European defence industry.
Tatra Trucks' position is based on competition law considerations rather than shareholder matters. The company believes the proposed transaction raises legitimate questions regarding the protection of commercially sensitive information where an active participant in the defence market could obtain indirect access to strategic business and technological know-how.
"Tatra Trucks is one of Europe's leading manufacturers of military vehicle platforms. Protecting confidential commercial and technological information is essential not only for our company but also for maintaining fair competition across the European defence industry," said David Chour, Vice Chairman of the Board of Tatra Trucks and Member of the Board of CSG.
According to publicly available information, STV Group is active in the defence sector and cooperates with a number of international defence manufacturers. Tatra Trucks believes that this market position makes it appropriate for the proposed transaction to receive a comprehensive competition assessment by the European Commission.
The company's observations focus on the protection of commercially sensitive information, including technical know-how, development activities, production planning, supplier relationships, pricing methodologies and other confidential business information that forms an integral part of Tatra Trucks' competitive position.
"Tatra Trucks fully respects the European merger control framework. Our objective is not to challenge investment activity itself, but to ensure that any transaction involving a strategic European defence manufacturer receives an appropriate level of regulatory scrutiny where competition and confidentiality issues may arise," David Chour added.
Tatra Trucks has therefore asked the European Commission to conduct a standard Phase I review, including appropriate market testing and consultation with the relevant national competition authorities.
The company believes that a thorough regulatory assessment will provide legal certainty for all parties while ensuring continued protection of fair competition within the European defence industrial base.
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