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EU not swayed by Knorr-Bremse's Haldex concessions: source
July 5, 2017 / 9:10 AM / 5 months ago

EU not swayed by Knorr-Bremse's Haldex concessions: source

BRUSSELS (Reuters) - EU antitrust regulators have not sought feedback on German car parts maker Knorr-Bremse’s [STELLG.UL] concessions to try to win approval for its Haldex (HLDX.ST) bid, suggesting the deal is destined for an in-depth investigation.

Last week, Knorr-Bremse offered to sell assets, among other remedies, to try to secure European Commission approval for the 4.86-billion Swedish crown ($571 million) offer for brakes systems maker Haldex.

The EU competition authority has not asked rivals and customers to comment on the plans, a person familiar with the matter said, indicating that it is set to open a full-scale investigation lasting about four months when a preliminary review ends on July 24.

Commission spokesman Ricardo Cardoso declined to comment. Knorr-Bremse said it was aware of regulatory concerns.

    “There are indications that the EU Commission might initiate a Phase II investigation, and Knorr-Bremse takes a confident view on a potential Phase II investigation,” the company said.

    The Knorr-Bremse bid faces strong headwinds after Haldex’s management pulled its support.

    Haldex Chairman Jorgen Durban told Reuters that the company received signals from the regulator that the deal stood only a slim chance of getting clearance.

    Knorr-Bremse, which has a Haldex stake of just under 15 percent, is hoping to win over Haldex shareholders at an extraordinary shareholder meeting.

    Reporting by Foo Yun Chee, additional reporting by Maria Sheehan in Frankfurt; Editing by Keith Weir

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