STOCKHOLM, June 29 (Reuters) - Sweden’s Haldex on Thursday said it was withdrawing its support for the bid from German car parts maker Knorr-Bremse as it is unlikely European competition authorities will approve the acquisition.
“Based on the feedback from the Competition Authority the Haldex board considers the probability of regulatory approval so low that the board has decided not to assist Knorr-Bremse in the continued competition investigations,” Haldex said in a statement.
Knorr-Bremse said on Wednesday it would apply for another extension of its takeover offer for Haldex after the European Commission indicated it was likely to launch an in-depth review of the deal.
Knorr-Bremse in September made a 4.86 billion Swedish crown ($575 million) all-cash bid for the Swedish brake systems rival, reigniting a bidding war by trumping an offer from Germany’s ZF . ($1 = 8.4567 Swedish crowns) (Reporting by Olof Swahnberg; Editing by Sandra Maler)