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SPX, Robert Bosch deal set for EU approval: source
June 25, 2012 / 11:01 AM / in 5 years

SPX, Robert Bosch deal set for EU approval: source

BRUSSELS (Reuters) - EU competition regulators are to approve the sale of U.S. conglomerate SPX Corp’s SPW.N automotive service business to world No. 1 car parts maker Robert Bosch GmbH ROBG.UL for $1.15 billion, a person familiar with the matter said on Monday.

The European Union’s executive Commission has been examining the deal since May 21 and has set a June 26 deadline for its decision.

“The Commission is set to give unconditional approval for the deal,” said the source, who declined to be identified because of the sensitivity of the matter.

While the Commission declined to comment, a spokesman for Robert Bosch said: “We are very happy”.

SPX, which makes pumps and filters used in producing liquids for industries ranging from oil to beverages, equipment for electrical transformers and cooling towers for power plants, is selling the unit to focus on its core business.

It also plans to use the proceeds to pay down debt and buy back shares. The acquisition will boost German-based Bosch’s presence in the North American automotive diagnostics market.

SPX’s auto tools unit accounts for about 15 percent of its revenues, with operations in the United States, Germany, France and China. The company competes with General Electric (GE.N), German engineering group GEA (G1AG.DE) and Swiss engineer ABB ABBN.VX.

Additional reporting by Jan Schwartz in Frankfurt; Editing by Rex Merrifield and Dan Lalor

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