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Continental Concludes Veyance Acquisition

Antitrust authorities approve acquisition

oil
Veyance

Continental has concluded its acquisition of Veyance Technologies Inc. The Brazilian antitrust authority CADE (Council for Economic Defence) cleared the transaction with certain conditions, thus providing the approvals necessary for completion.
The transaction is valued at 1.4 billion euros.

January 2015Continental has concluded its acquisition of Veyance Technologies Inc. The Brazilian antitrust authority CADE (Council for Economic Defence) cleared the transaction with certain conditions, thus providing the approvals necessary for completion. The transaction is valued at 1.4 billion euros.

“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,” says Dr. Elmar Degenhart, chairman of Continental’s Executive Board in Hanover. “Continental has financed the acquisition entirely from liquid funds and available lines of credit. Veyance will make an immediate positive contribution to the corporation’s profitability.”

“Both the workforce and the customers stand to profit from the merger of the two companies,” says Heinz-Gerhard Wente, a member of Continental’s Executive Board and CEO of the ContiTech division. “Veyance will complement ContiTech in markets in which we have been underrepresented up till now. Another very important point is that the acquisition will enable us to significantly expand our industrial and end-customer business and, as a result, enable ContiTech to achieve a share of almost 60 percent of its sales outside the automotive original equipment sector.”

Because of the significance of the acquisition, antitrust authorities worldwide had spent the last eleven months scrutinizing the purchase and its impact on the respective markets. In response to the structural concerns expressed by some of the antitrust authorities, Continental will divest Veyance’s air springs business in NAFTA and its current steel-cord belting business in Brazil.

Continental Concludes Veyance Acquisition

Dr. Elmar Degenhart
Chairman of Continental’s Executive Board

Continental Concludes Veyance Acquisition

Heinz-Gerhard Wente
Member of Continental’s Executive Board and CEO of the ContiTech division