October 04, 2016

EC sets condition for Faiveley take over by Wabtec

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THE European Commission (EC) has approved the planned acquisition of Faiveley Transport by Wabtec, on condition that Faiveley sells one of its subsidiaries.


Faiveley must divest itself of its sintered brake material company Faiveley Transport Gennevilliers (FTG) which has annual sales of around €12m in order to receive full approval from the EC of its acquisition by Wabtec. The EC will also have to approve the buyer of FTG to ensure that there are no additional anti-competition implications.

 

Faiveley Transport and Wabtec are also awaiting regulatory clearance in the United States, where the two companies say they are cooperating with the US Department of Justice to gain approval for the take over.

Wabtec announced in July 2015 its intention to acquire the Faiveley family stake in Faiveley Transport for $US 1.8bn, including assumed debt. Wabtec’s acquisition of Faiveley is expected to be finalised during the last quarter of this year.

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