Spain's Grupo Antolin has been given approval by the European Commission to acquire Magna's auto interiors business, reports Expansión. According to the region's competition commission, the deal would not pose any issues due to the small increase in market share that would be seen. It also noted the large numbers of companies involved in the manufacture of components for the automotive sector in Europe as another reason for giving the go ahead.
Significance: Magna International agreed to sell most of its automotive interiors business – excluding its seat business – to the Spanish company in April 2015. Grupo Antolin will add 36 manufacturing operations and 12,000 employees in Europe, North America and Asia. The sale is intended to allow Magna to focus on its other parts of its business portfolio which it considers key to its future, while Grupo Antolin will become a much larger player in automotive interiors. With the benefits of the USD2.4 billion revenue that this unit will bring, Grupo Antolin – which manufactures car-roof interior systems, doors, seats and lighting components – will almost double. With another vital milestone passed, the companies seem on course to complete the deal by the end of the third quarter as planned.
