Conti-Phoenix merger approved

Brussels--The European Commission has approved Continental AG's takeover of Phoenix AG. In order to meet EC concerns over possible distortion of the airspring and conveyor belting markets arising from the merger, said a statement from Conti, "Continental agreed to sell Phoenix's Vibracoustic holding (a joint venture with Freudenberg & Co. KG in the area of vibration control and suspension technology) along with Phoenix's production of air spring original equipment for commercial vehicles."

The company has also, "agreed to dispose of a heavy conveyor belt production line. In both cases, Continental [has] concluded corresponding preliminary agreements with purchasers approved by the Commission." Conti said these actions resolve all the EC concerns over the deal.

"There is nothing in the way of a merger of these two historic German companies any more and we will find ourselves well positioned to deal with the worldwide competition," said Continental executive board chairman, Manfred Wennemer.

He added that it was too early to give any further details concerning the future development of individual business sectors or plants.