The EC says the acquisition of Phoenix creates monopoly in these areas

German tyre and technical rubber manufacturer Continental has won European Commission approval for its acquisition of Phoenix, but has been ordered to sell its assets in the truck air springs and conveyor belt businesses.

The Commission said Conti’s acquisition of Phoenix would combine the two leading players in the market for commercial vehicle air springs and heavy steel cord conveyor belts, giving a market share of “well over 60%” in each market.

In order to eliminate competition concerns, Conti must sell its 50% stake in Vibracoustic, the supplier of automotive anti-vibration systems based in Weinheim, Germany, to the other shareholder, Freudenberg. Conti has also been told to sell Phoenix’s plant in Hungary that makes air springs for commercial vehicles.

Conti has also committed to sell a production line for wide steel cord conveyor belts to its competitor, Sempertrans.