BRUSSELS (Reuters) - Federal Mogul Corp gained European Union regulatory approval on Monday to buy U.S. conglomerate Honeywell International Inc’s friction materials business after agreeing to sell two units in Europe.
The European Commission had initially expressed concerns about the $155 million deal which would combine two of the largest producers of original equipment spare parts in the 28-country bloc, saying this may lead to price hikes.
Federal Mogul subsequently offered some concessions.
“Federal Mogul committed to divest the OEM/OES business located in Marienheide, Germany, which focuses on the production of commercial vehicle pads, and another factory located in Noyon, France, which is active in the production of light vehicle pads,” the EU competition authority said.
Reporting by Foo Yun Chee, editing by Robert-Jan Bartunek