Brussels, 27/10/2004 (Agence Europe) - The Commission has given its green light for Continental AG to take control of Phoenix AG. These are both German companies active in the rubber products sector, used in suspension and anti-vibration systems, amongst others. The in-depth inquiry showed that competition would be affected on the air springs markets, which are used in the production of suspensions systems for vehicles and for conveyor belts used to transport heavy loads long distances (such as lignite). Both companies together will have a market share over 60%n and will only have to tackle a reduced number of competitors. It is also relatively difficult to get into these markets, given the specific nature of the products and the need for excellent knowledge of them. However, after the changes proposed by Continental, the Commission agreed to the operation. With a view to reducing the risks, Continental will get rid of the Vibracoustic company, which Phoenix owns jointly with Freudenberg, which distributes air springs for trucks and cars. Phoenix will also withdraw production of these elements for commercial vehicles in Hungary, so that the overlaps of activity on this market will disappear. Lastly, Continental undertakes to sell a conveyor belt production line to its competitor Sempertrans, thus allaying the Commission's fears in this field.