The European Union Commission on Tuesday cleared German firm ThyssenKrupp AG’s acquisition of DaimlerChrysler AG’s power-steering unit Mercedes-Benz Lenkungen GmbH, Dow Jones reported.
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The news agency said financial details of the deal haven’t been disclosed but it gives ThyssenKrupp a 60% share, with plans to acquire the remaining shares after two years.
Dow Jones said ThyssenKrupp is buying the German supplier to reach new markets and develop new systems in the area of electric power-assist steering systems – Thyssen also will combine the production and research activities of both its car and truck sectors as a result of the deal.
DaimlerChrysler is selling the unit to focus on vehicle manufacturing and outsource parts production, the report added, noting that Mercedes-Benz Lenkungen operates plants in Dusseldorf, Mulheim/Ruhr and Schonebeck, and Saxony-Anhalt in Germany, as well as sites in Poland, Brazil and the US, has about €300 million in annual sales and employs about 1,600 people.
Dow Jones said Dusseldorf-based ThyssenKrupp is involved in steel, capital goods and services and its automotive unit Thyssen Krupp Automotive specialises in body parts, engine components, and steering columns and systems with over 120 production sites in 17 countries, sales of €6.3 billion in fiscal year 2002 and 38,000 employees.
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By GlobalDataThe deal was cleared under the commission’s simplified antitrust procedure which clears mergers or acquisitions after one month if no objections are raised by third parties, Dow Jones said.
