BRUSSELS, Belgium (Oct. 27)—The European Commission has approved Continental A.G.'s takeover of Phoenix A.G. with the proviso that Conti sell Phoenix's share of Vibracoustic Holding and its commercial vehicle original equipment air spring business as well as its own heavy-duty conveyor belting business.
The commission's approval clears the way for the two companies to complete the $275 million deal first announced in April and merge Phoenix's remaining activities with ContiTech's various business units, according to statements from both companies.
The deal will create a business entity with about $3 billion in annual sales from activities in several sectors, including hose, belts, molded goods, calendered goods, air springs, anti-vibration components and automotive interiors. Phoenix's partner in Vibracoustic is Freudenberg Group.
Continental said it already has struck preliminary agreements for the targeted businesses with as-yet-unidentified purchasers approved by the commission.