German Knorr-Bremse gave on Monday in the bidding war for the Swedish automotive subcontractor Haldex with a bid of 110 kronor per share.
But the deal are already threatened by the United States authorities put a spoke in the wheel.
the drama surrounding the Haldex began in July when German SAF-Holland surprisingly made a hostile bid of just under 95 per share. In early August counterattack, ZF Friedrichshafen with SEK 100 per share.
On Monday escalated battle for Haldex further when the company’s largest competitor in the braking system, the German privately owned company, Knorr-Bremse, presented a bid of 110 kronor per share, valuing the entire Haldex 4.9 billion.
Already on Friday afternoon, it became clear that something was afoot. Then rushed Haldex share from under $ 100 to 104 crowns before the market chose to stop the trade.
The explanation was with all probability that Knorr-Bremse hoovering market shares. On Monday morning announced the Knorr-Bremse the company controls more than 8 percent of the shares.
To reach more than 8 percent have Knorr-Bremse likely bought the record of 3.6 percent of the shares that SAF-Holland in mid-owned in Haldex.
Notably, Knorr-Bremse has the same financial advisers that SAF-Holland had at its takeover attempt: Berenberg based in Hamburg.
There are two significant threat to Knorr-Bremse will manage to buy Haldex . One is to ZF or any new entrant adds a new higher bid. The second, and possibly the biggest, is that competition authorities put a spoke in the wheel.
When a first glance it becomes obvious a market concentration at Knorr-Bremse, which together with the US Wabco dominate the global market for brake systems, buying third-place Haldex.
Many observers in the industry argues that a deal between Knorr-Bremse and Haldex lead to an oligopoly that could affect customers like Scania and Volvo negative.
“the competition would be much better if ZF bought Haldex as it would then enter a new financial strong player in this market and compete with Knorr-Bremse and Wabco, “says an industry source.
the probability is greatest to US competition authorities stands rejected the deal because of Haldex and Knorr-Bremse have a high market share in the so-called drum brakes for commercial vehicles in North America .
According to estimates by market share, as Di has noted, Haldex 40-45 of the market for drum brakes for heavy vehicles in North America and with Knorr-Bremse, the total market share well above 50 percent.
An analyst who is the Haldex does not exclude the US competition authorities stands dismissed against a merger between the Swedish company and Knorr-Bremse.
But while lifting analyst an argument to suggest that Americans do not look so serious to the high market share:
“I think competition authorities permit fairly high proportions of drum brakes in North America because it is a technology that will give way to disc brakes.”
Knorr-Bremse tried at Monday’s conference call to tone down the risk of problems with competition authorities.
“We are very optimistic. If you look at the commercial vehicle market will continue to the conclusion that we have complementary businesses. Haldex is strong in tow and we are strong on the truck. Trailers and trucks have quite a different product requirements, “said CEO Klaus Deller.
Haldex Board, which has recommended that shareholders accept the ZF’s offer, will in the coming weeks to evaluate the offer from Knorr -Bremse. An answer will come in good time before the ZF’s bid expires on September.
the Board must into account the risk that any competition authority stops the Knorr-Bremse, which could lead to a situation that there is no bidder left.
“Knorr-Bremse is a competitor to us as it is given to that question is in the picture in our evaluation, “says Magnus Johansson, acting as President of Haldex, to Di.
According to him, Knorr-Bremse shown interest in Haldex at a late stage.
Do you know no further interest in addition to ZF, and Knorr-Bremse?
“no.”
Haldex share rose on Monday by 11 percent to 115.50 kronor, which shows that the stock market sees a high likelihood of an increased offer.
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