BERLIN (Reuters) - German car parts and tyre maker Continental AG’s (CONG.DE) rubber and plastics division bought the automotive air conditioning business of U.S.-based Parker Hannifin Corp (PH.N) to beef up its overseas automotive operations.
The acquisition, announced by ContiTech for an undisclosed amount on Monday, means the Hanover-based company takes over about 1,000 employees at five plants in China, Mexico, South Korea and the Czech Republic, according to a statement.
“The purchase fits our growth strategy perfectly,” said ContiTech’s chief executive, Heinz-Gerhard Wente, hailing Parker’s exposure to U.S. and Japanese carmakers.
“We will be a global partner for (auto) manufacturers such as Ford, GM and Honda after this acquisition.”
ContiTech said the acquisition is one of its biggest-ever, noting that purchasing agreements were signed on Monday. The deal has yet to be approved by cartel authorities.
Reporting By Andreas Cremer; Editing by David Cowell