HANOVER, Germany – Continental has taken a further significant step toward closing its acquisition of US company Veyance Technologies Inc., based in Fairlawn, Ohio. Yesterday, 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 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, including in Mexico, Brazil and Chile. As a result, the closing 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,” said Wente. “The assessment of the antitrust authorities with positive rulings shows that the acquisition will not have an adverse impact on the markets.”
Continental says the acquisition of Veyance Technologies will strengthen its industrial operations. The business will be integrated into its ContiTech division in markets in which the company is underrepresented at present, particularly in the U.S. and South America. Locations in Canada, China, Australia and South Africa will provide additional opportunities, the company stated. In 2013, Veyance recorded sales of some 1.5 billion euros (approximately $1.9 billion). Its 27 plants around the world had a total workforce of 9,000 employees at the end of 2013.
