Phoenix sells assets ahead of takeover by Conti


FRANKFURT, Dec 30 (Reuters) - Phoenix AG has sold two assets to clear the way for its 500-million-euro ($681-million) takeover by tyre maker Continental , the German automotive supplier said on Thursday.

Phoenix sold 50 percent of air spring distributor Vibracoustic GmbH & Co KG to its joint venture partner, Germany's Freudenberg & Co KG, and also sold its air spring production unit to Freudenberg.

The European Commission had demanded the businesses be sold as a condition to the takeover by Continental, fearing the combined firm would otherwise have a market share of well over 60 percent in air springs for commercial vehicles.

Conti has agreed to sell a wide steel cord conveyor belt production line to competitor Sempertrans for the same reason.

This week, Phoenix shareholders approved the acquisition by Conti, which will merge Phoenix with its ContiTech division to create a business with annual sales of around 2.9 billion euros.



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