A PYMNTS Company

Germany/US: Feds thwart Veyance rubber merger

 |  November 6, 2014

Germany-based Continental has reportedly hit a potentially devastating roadblock in its plans to acquire US rubber company Veyance Technologies.

Reports say US regulators reviewing the deal have raised concerns about its impact on competition; Continental, which announced plans to acquire Veyance for $1.75 billion last February, declined to comment on the reports.

The takeover would be one of Veyance’s largest-ever acquisitions, and would catapult the auto parts and tire manufacturer into a dominant market position, according to reports. The German company has already offered to divest some Veyance assets to secure clearance for the deal.

Despite reports of a regulatory challenge, Continental said it still expects to finalize the merger by the end of the year.

Full content: Reuters

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