The US Department of Justice has approved Continental’s acquisition of Veyance Technologies Inc. on the condition that it divests Veyance’s air spring plant in San Luis Potosí in Mexico. The Canadian authorities have also cleared the deal.
“We welcome these decisions, which bring us significantly closer to our strategic goal – expanding our industrial operations,” said Heinz-Gerhard Wente, a member of the Executive Board of Continental AG and CEO of the ContiTech division. “At the same time we regret that we are not permitted to take over the air springs business in NAFTA. In our estimation that would have brought clear benefits for the customers. We will now look for a buyer as quickly as possible that will provide a secure future for the approximately 500 employees in the plant in Mexico and develop the business further.”
Continental is still awaiting approval of the deal in a number of other jurisdictions, setting the planned closure from the end of this year to sometime in 2015. “We will continue to cooperate in every way with the authorities to help in reaching a decision quickly so that our customers and employees know exactly where we stand,” said Wente. “The assessment of the antitrust authorities with positive rulings shows that the acquisition will not have an adverse impact on the markets.”
Written by Jonathan Rowland.
Read the article online at: https://www.worldcoal.com/coal/15122014/world-coal-us-and-canada-approve-veyance-technologies-acquisition-coal1682/