French car parts maker Faurecia has gained European Union regulatory approval to buy the German assets of rival Plastal.
Faurecia, which is majority-owned by PSA Peugeot Citroen said the acquisition will cost between EUR22m and EUR33m (US$29.6m to US$44.4m).
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The European Commission said in a statement that the proposed merger would not give rise to any significant competition concerns as the parties are not each other’s closest competitors.
Faurecia added that its acquisition of Plastal Germany – with six industrial sites and a research centre – would increase its industrial footprint and research and development capacity in the country.
Faurecia chief executive Yann Delabriere said: “This acquisition [will affect] the operational margin as early as 2010. It takes place at a very reasonable cost and with no significant increase of Faurecia’s debt.”
The acquisition also strengthens ties with customers such as Ford, Audi, Daimler, BMW and Porsche.
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