HANOVER, Germany (June 29)—Continental A.G. will proceed with its plan to acquire fellow German rubber product maker Phoenix A.G. after Conti gained control of more than 75 percent of Phoenix's outstanding shares before its self-imposed deadline of midnight June 28.
This achievement "opens the way to wide-ranging possibilities for shaping the future of Phoenix," Conti said in a prepared statement. At this point, Conti said, the European Union's commission on antitrust matters will begin its review of the takeover and the successful completion of the acquisition will depend on the commission's approval.
Having reached the acceptance rate of 75 percent, a statutorily mandated two-week deadline extension ensues, Conti said. All Phoenix shareholders who have not yet offered their shares to Continental can do so in the period from July 4-19.
Following the commission's ruling, Phoenix said, the two companies will be able to discuss the integration of Phoenix's operations with Conti's ContiTech non-tire rubber products unit. The combined entity could generate annual sales of more than $3 billion.