Haldex Board endorses Knorr-Bremse bid

The Board of Swedish braking technology firm, Haldex, has recommended shareholders accept a takeover bid by German rival, Knorr-Bremse, but again pointed out the offer could face obstacles on competition grounds.

Haldex had been subject to a bidding war between Knorr-Bremse and fellow German company, ZF Friedrichshafen, since early September, with ZF dropping out of the battle last month after failing to win majority.

“The board believes that the Knorr-Bremse offer is clearly recommendable, provided Knorr-Bremse obtains all necessary regulatory approvals and clearances to complete its offer,” the Haldex board said in a statement.

Haldex' Board had previously recommended ZF's bid, despite it being lower than Knorr-Bremse's, as concerns over competition regulations grew.

“We still see a considerable risk that authorities will demand a lot from Knorr-Bremse when it comes to fixing the market situation that will arise with this,” Haldex' Acting Chairman, Magnus Johansson, told newswire, Reuters.

“And we still don't have enough assurances from Knorr-Bremse that they have plans for that.”

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