US Antitrust Authority Grants Conditional Approval to Veyance Acquisition
Antitrust authority in Canada also clears acquisition / Air springs plant in Mexico has to be sold
"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.
ContiTech Antriebssysteme GmbH
Continental develops intelligent technologies for transporting people and their goods. As a reliable partner, the international automotive supplier, tire manufacturer, and industrial partner offers sustainable, safe, comfortable, customized, and affordable solutions. The corporation with its five divisions Chassis&Safety, Interior, Powertrain, Tire und ContiTech generated sales of approximately €33.3 billion in 2013 and currently employs around 189,000 people in 49 countries.
The ContiTech division numbers among the leading suppliers of a host of technical rubber products and is a specialist for plastics technology. The division develops and produces functional parts, components and systems for the automotive industry and other important industries. ContiTech currently has a workforce of approximately 31,400 employees. In 2013 it recorded sales of about €3.9 billion.