Release time : 2015-06-15 10:42:28
Privately held German bearings maker Schaeffler won permission on Friday from the European Commission to acquire auto parts maker Continental (CONG.DE), the EU's executive arm said.
The Commission found the two companies' businesses did not overlap and were to a minor extent vertically integrated.
The Commission's investigation found the merged entity would not have the ability to discriminate against its competitors in this market, as there were credible alternative suppliers and needle roller bearings represent only a small cost factor, it said in a statement.
Schaeffler earlier this year set out to buy Continental. It was initially met with resistance and had to agree to keep its holding in Continental below 50 percent for four years to push through its 75 euro-a-share offer.
Schaeffler said it would now conclude the planned takeover "without delay" and would pay Continental shareholders for the stock they had tendered on or around January 8.
The shares tendered for sale could be traded up until January 2, Schaeffler said.
Some of the shares tendered to Schaeffler (CONGv.DE) (CONGvb.DE), which are also still being traded but carry the previous owner's acceptance of the 75 euro offer, were up 8.1 percent at 69.20 percent in floor trading on Friday evening.
Continental said once Schaeffler had paid for all the shares tendered, an agreement would come into force under which Schaeffler pledged to refrain from interfering with management's strategy and demanding substantial structural measures.