Brazilian auto parts company Tupy agreed to scale back its acquisition of Italy’s Teksid to resolve U.S. antitrust concerns that the deal could lead to higher prices for heavy-duty vehicles, the Justice Department said on Thursday.
Under the deal, which was announced in December 2019, Fiat Chrysler (FCA) agreed to sell its Teksid cast-iron automotive components business to Tupy for an enterprise value of 210 million euros ($249.17 million). Fiat in 2020 merged with PSA group to create Stellantis.
Tupy will still acquire Teksid’s operations in Brazil and Portugal but will refrain from purchasing the Mexican operations, the Justice Department said.
“Tupy’s decision to restructure their merger is a victory for American engine manufacturers and consumers,” said Acting Assistant Attorney General Richard Powers. “As originally proposed, the transaction would have eliminated competition that keeps prices low and quality high for vital industries such as transportation and agriculture.”
Source: Reuters.com