EU regulators okay Valeo bid for FTE with conditions

FILE PHOTO - The company logo of auto parts maker Valeo is pictured before the company's 2015 annual results presentation in Paris, France, February 19, 2016. REUTERS/Benoit Tessier

BRUSSELS (Reuters) - EU antitrust enforcers approved on Friday Valeo’s 819.3-million-euro (730.21 million pounds) bid for German clutch manufacturer FTE Automotive after the French car parts supplier agreed to sell a unit to an Italian rival.

The European Commission said the companies offered the concession after Brussels expressed concerns about the merged company’s very high market shares in passive hydraulic actuator modules and concentric slave cylinders for light vehicles.

The EU competition authority said it was difficult for customers to switch to other suppliers.

“Valeo has offered to divest its entire passive hydraulic actuator business with the exception of its Korean activities,” the Commission said. The buyer is Italian car parts supplier Raicam.

Reporting by Foo Yun Chee; editing by Francesco Guarascio