December 11, 2014 / 10:04 PM / in 4 years

UPDATE 1-U.S., Canadian regulators approve Continental-Veyance deal

(Adds details on Canadian approval)

WASHINGTON/TORONTO, Dec 11 (Reuters) - German auto supplier Continental AG won both U.S. and Canadian antitrust approval to buy Veyance Technologies, a U.S.-based maker of industrial hoses and belting, on condition that it sells certain assets, regulators said on Thursday.

The U.S. Department of Justice said it approved the proposed 1.4 billion euro ($1.73 billion) deal for Ohio-based Veyance if Veyance sold its North American commercial vehicle air springs business.

In February, Continental said it had agreed to buy Veyance as a way to diversify its business. Continental said it plans to integrate Veyance, which produce industrial hoses and belting, into its Contitech division.

To win U.S. approval for the deal, the company agreed to divest two Veyance manufacturing plants in Mexico, warehouses in Mexico, the United States and Canada and a research and development operation in Fairlawn, Ohio, as well as patents and trademarks associated with the air spring business.

In a separate statement, Canada’s Competition Bureau said on Thursday it has approved the deal in light of the settlement with the U.S. Department of Justice.

“The implementation of this settlement agreement will adequately resolve the Bureau’s concerns related to the manufacture of air springs for commercial vehicles,” the Bureau said in a statement.

The Bureau said it benefited from coordinating its review with authorities in the United States and Mexico.

Carlyle bought Veyance from Goodyear Tire and Rubber Co in 2007 for $1.475 billion and was licensed to continue to use the Goodyear Engineered Products brand for its range of belts, hoses and other products.

$1 = 0.8076 euros Reporting by Diane Bartz in Washington and Euan Rocha in Toronto; Editing by Dan Grebler and Grant McCool

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