US clears ContiTech’s Veyance takeover

Hanover, Germany – The US Department of Justice has approved ContiTech’s purchase of Veyance Technologies, but Conti must sell Veyance’s air spring plant in San Luis Potosi, Mexico.

In a press release on 12 Dec, ContiTech said it regretted that it was not permitted to take over the air springs business in NAFTA, but welcomed the decision saying it “bring us significantly closer to our strategic goal – expanding our industrial operations.”

“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,” said Heinz-Gerhard Wente, a member of the Executive Board of Continental AG and CEO of the ContiTech division.

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.”

ContiTech had previously announced that it was hoping to seal the €1.5 million deal before 2014, as scheduled.