Continental has taken a further significant step toward closing of the acquisition of US company Veyance Technologies Inc, Fairlawn, Ohio. Yesterday evening, the US antitrust authority (Department of Justice) cleared the acquisition subject to the condition of divesting Veyance's air spring plant in San Luis Potosí, Mexico. The antitrust authority in Canada has meanwhile also approved the acquisition of the rubber and plastics company.
"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 who will provide a secure future for the approximately 500 employees in the plant in Mexico and develop the business further."
Decision of a few antitrust authorities are still pending. This means that the closing planned for the end of this year will shift to 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," declared Wente. "The assessment of the antitrust authorities with positive rulings shows that the acquisition will not have an adverse impact on the markets."
Continental intends the acquisition of Veyance Technologies to strengthen its industrial operations. Veyance will complement the ContiTech division in markets in which the company is underrepresented at present, particularly in the US and South America. Locations in Canada, China, Australia and South Africa will provide additional opportunities. Veyance operates around the world in the field of rubber and plastics technology and in 2013 recorded sales of some 1.5 billion euros, 90 percent of which were achieved in industry. Its 27 plants around the world had a total workforce of 9,000 employees at the end of 2013.
"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 who will provide a secure future for the approximately 500 employees in the plant in Mexico and develop the business further."
Decision of a few antitrust authorities are still pending. This means that the closing planned for the end of this year will shift to 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," declared Wente. "The assessment of the antitrust authorities with positive rulings shows that the acquisition will not have an adverse impact on the markets."
Continental intends the acquisition of Veyance Technologies to strengthen its industrial operations. Veyance will complement the ContiTech division in markets in which the company is underrepresented at present, particularly in the US and South America. Locations in Canada, China, Australia and South Africa will provide additional opportunities. Veyance operates around the world in the field of rubber and plastics technology and in 2013 recorded sales of some 1.5 billion euros, 90 percent of which were achieved in industry. Its 27 plants around the world had a total workforce of 9,000 employees at the end of 2013.
