Contitech’s purchase of Veyance gets US regulatory approval

In a letter to stakeholders dated 12 December 2014, Veyance Technologies representatives confirmed that the United States’ Department of Justice has endorsed its takeover by Continental AG’s ContiTech division.

However, while the company had also hoped to secure approval from Brazilian authorities this year, this part has not yet been completed. Due to Christmas holidays all round any decision is now likely to be made in 2015. Nevertheless Veyance representatives said “they are confident that we will secure the approval from the Brazilian authority and close very soon thereafter”.

“Although our interactions remain guided by regulatory guardrails, our post close planning has been robust and full of exciting potential”, the letter explained, affirming that plans are still on-track: “Veyance is not delaying or changing our strategies. We remain committed to supporting the growth of our partnership with new products, enhanced manufacturing, and improved customer service tools.”

In February, Continental agreed to buy Veyance for 1.4 billion euros. In April, Contitech set the goal of doubling turnover.