BRUSSELS (Reuters) -- A unit of Magna International won approval from European Union antitrust authorities to acquire the Czech-based operations of bankrupt U.S. rival Cadence Innovation.
The European Commission said in a statement the proposed transaction was unlikely to have negative effects on competition in the concerned market.
Magna Presstec AG's takeover of Cadence Innovation's Czech operations followed an announcement in February by parent Magna of its acquisition of the European activities of Cadence Innovation LLC.
Cadence Europe, which supplies automotive interior and exterior plastic components such as instrument panels, bumpers and radio grills to European and Asian carmakers, has three production sites in the Czech Republic and one in Hungary.
The parent Cadence Innovation filed for Chapter 11 bankruptcy in August last year, hit by soaring material costs and falling demand for big vehicles. Its European operations were excluded from the insolvency proceedings.
Cadence Europe reported sales of about $369 million in 2007.