The planned takeover of Swedish company Haldex by Germany’s Knorr-Bremse has been delayed due to a potential investigation by the European Union (EU) Commission.
Knorr-Bremse first announced a public offer to the shareholders of Haldex to tender all shares in the company to Knorr-Bremse at the beginning of September 2016.
In April 2017, it was then announced that the acceptance period in the offer had been extended until September 2017.
Now, Knorr-Bremse has received indications by the European Commission that it is likely to initiate a Phase II investigation in connection to the acquisition, even though a final decision has not yet been communicated.
“In anticipation of the EU Commission’s potential decision to initiate a Phase II investigation, Knorr-Bremse will apply for permission from the Swedish Securities Council to extend the acceptance period until 9 February 2018,” the company announced.
Knorr-Bremse pointed out it takes a “confident view” on the potential in-depth investigation by the commission, which will see the EU’s executive arm look more closely at the proposed merger.
“We continue to drive the merger control process with full commitment,” said Klaus Deller, Chairman of the Executive Board of Knorr-Bremse AG.
“We will carry on our open and constructive dialog with the EU-Commission. Based on the compelling strategic fit of both companies we aim at developing innovative solutions for customers and creating value for Knorr-Bremse, Haldex and its shareholders. It is our clear objective, to open the next chapter of our company’s history together with Haldex.”