Brazil Auto Parts Giant Agrees to Revise Teksid Takeover Deal - Justice Department

WASHINGTON (Pakistan Point News / Sputnik - 01st July, 2021) Brazilian engine parts company Tupy has agreed to restructure its takeover agreement with the automotive metal castings firm Teksid because of US antitrust concerns, the Department of Justice announced on Thursday.

"Auto parts supplier Tupy agreed to restructure its acquisition of Teksid after the Department of Justice raised concerns that the merger would result in higher prices and reduced quality and timeliness of production for crucial components used in heavy-duty engines," the Justice Department explained in a news release.

As initially proposed, the deal would have combined the two most significant suppliers of engine blocks and cylinder heads for heavy-duty engines to customers in North America as key inputs for engines used in large trucks, construction and agricultural equipment and many other vehicles, the release said.

"Following the restructuring, Tupy will acquire only Teksid's iron operations in Brazil and Portugal. Teksid will retain its iron operations in Mexico and continue to compete with Teksid to supply US customers," the Justice Department said.

Tupy, a Brazilian company, is the largest supplier of iron blocks and heads for heavy-duty engines to customers in North America. Tupy owns four iron foundries, two in Brazil and two in Mexico.