Volkswagen has been granted European Union approval for its planned purchase of various Karmann assets.
Karmann is currently under insolvency administration in Germany.
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Under the proposed transaction, Volkswagen will acquire the following Karmann businesses: car and components development, contract manufacturing, plant engineering and the development and production of equipments and tools.
The European Commission concluded that the proposed transaction would not significantly impede competition in the European Economic Area (EEA) or any substantial part of it.
The commission noted that as Karmann is a supplier to the car industry, the transaction mainly leads to vertical links. It said in a statement: “Given the presence of other considerable suppliers and the moderate market share of Karmann, the commission concluded that car manufacturers will continue to have sufficient alternative suppliers after the transaction.”
In a separate deal, Valmet Automotive is to acquire Karmann’s roof systems business by year-end.
