Brazil/US: Authorities approve Continental-Veyance $1.7 billion acquisition

Brazilian antitrust authority CADE has approved Continental’s acquisition of USA-based rubber company Veyance. The endorsement was granted on 29 January and follows the approval given by the United States Department of Justice in December.

Veyance operates in the field of rubber and plastics technology. Half their market is generated in the US with Latin America, Africa, China and the Asia region also considered important markets. Key Veyance products include conveyor belts, hoses and power transmission belts.

“By integrating Veyance in our ContiTech division, we are expanding our global position in rubber and plastics technologies. In addition, this acquisition will bring Continental a significant step closer to its strategic goal of further increasing the proportion of industrial and end-customer business in its sales,” commented Dr. Elmar Degenhart, chairman of Continental’s Executive Board.

Continental received conditional approvals from the U.S. and Mexico in December and received the go-ahead from countries in Europe earlier in 2014.

The condition requires the company to divest its air springs business in the NAFTA region, which includes an air springs plant in Mexico and a technical office in Ohio.

Full Content: Tire Business

Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.