October 4, 2016 / 1:02 PM / a year ago

EU approves with conditions Wabtec's $1.8 billion Faiveley bid

BRUSSELS (Reuters) - U.S. rail equipment maker Wabtec Corp (WAB.N) secured EU antitrust approval for its $1.8 billion buy of Faiveley Transport FAIP.PA after agreeing to sell the French company’s sintered friction material business.

The European Commission said the divestment of the unit, Faiveley Transport Gennevilliers, would remove all overlaps between Faiveley and Wabtec in this area.

Sintered train friction materials, which are materials transformed from powder into a strong substance capable of withstanding high temperatures and pressure, are key components in modern train brake systems.

The EU competition enforcer had been concerned that the deal to create one of the world’s largest equipment suppliers to public railway companies would reduce competition and lead to higher prices for consumers.

Reporting by Foo Yun Chee, editing by Robert-Jan Bartunek

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