German automotive supplier Continental has planned to take over US rubber firm Veyance Technologies, but the deal has now come under assessment from the German cartel office.
According to a spokesman for the office, the in-depth analysis should be finished by August 25 and would investigate the future impact on the market of the deal, after in February Continental publicly announced it closed a deal to pay 1.4 billion euros ($1.92 billion) to acquire Veyance – with the German supplier aiming to further diversify its range of businesses.
According to Continental, which is both Europe’s second largest auto supplier and tyre maker, 2014 should tally to the fifth consecutive year of record sales and profit, after last year’s earnings surged on increased sales of parking-assistance systems and braking electronics.
After Veyance is purchased, the Ohio based company should boost profits and become a part of the ContiTech unit, which has around 29,700 employees and contributed to the parent company’s total profits with sales of around 3.9 billion euros – or 12% – last year.
Via Automotive News Europe