From AFX News Limited
BRUSSELS — The European Commission says it has approved Leoni AG unit Bordnetz-Systeme GmbH’s proposed $324 million acquisition of Valeo SA’s automotive wiring harness business Valeo CSB.
The combined market share of the parties in the electrical distribution systems (EDS) and electronic electrical distribution systems (EEDS) market would still be moderate after the merger.
Valeo said mid-November, when the commission extended the deadline for its inquiry into the proposed deal, that the business had sales of $785 million and EBITDA of $52 million in 2006. It employs 11,700 people at 12 industrial sites, including nine in cost-competitive countries.
The disposal will result in a capital loss of around $73 million for Valeo compared to the unit’s book value, it said.
Leoni added at the time that it would not need to increase its capital to finance the acquisition.
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