Siemens wins EU approval to sell auto subsidiary
The German engineering giant Siemens won approval from the European Union on Thursday to sell its automotive subsidiary VDO to German car parts maker Continental.
The European Commission, the EU’s antitrust competition offive, said in a statement that it found the transaction would not significantly impede effective competition on the European market. Continental and Siemens VDO are both suppliers to the automotive industry at the international level. Continental has activities in the areas of tires, brake systems, car electronics, sensors and telematics and technical rubber products. Siemens VDO’s activities are focused on the manufacture and supply of electronic and electro-mechanical components and systems, including brake systems and sensors. The commission said the combined entity would still face strong competition from other players.
After takeover of Siemens VDO, Continental will become the number five globally in terms of turnover among suppliers to the motor industry behind Bosch, Denso, Delphi and Magna. In Europe, the combined entity would become a stronger competitor to Bosch, the current market leader. In July, Continental won a bidding war against US firm TRW to buy VDO from Siemens for €11.4 billion ($16.8 billion). The deal allows Siemens to focus on its core business off high technology. (people.com.cn)
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