Power management company Eaton (ETN) - Get Eaton Corp. Plc Report is pleased to announce that it has reached two important milestones in the closing of the sale of its Hydraulics business to Danfoss A/S.
First, the U.S. Department of Justice (DOJ) has filed a proposed settlement in the U.S. District Court for the District of Columbia today that, if approved by the court, resolves the DOJ's concerns with Danfoss's acquisition of Eaton's Hydraulics business.
The settlement requires the sale of certain orbital motor and steering unit assets to Interpump Group S.p.A., or to another entity approved by the DOJ. This sale does not have to be completed, however, prior to the closing of the company's transaction with Danfoss.
Eaton and Danfoss have already agreed to the proposed settlement.
Second, the European Commission approved Interpump as a suitable purchaser of the orbital motor and steering assets. These assets were required to be divested by the European Commission under the conditional approval granted in March 2021.
"We are excited to reach these important milestones and look forward to closing the transaction, which we currently expect to occur in the next several weeks," said Craig Arnold, Eaton chairman and chief executive officer. "We appreciate the careful consideration of the Department of Justice and the European Commission, as well as the other regulators who reviewed the transaction."
Eaton's mission is to improve the quality of life and the environment through the use of power management technologies and services. We provide sustainable solutions that help our customers effectively manage electrical, hydraulic, and mechanical power - more safely, more efficiently, and more reliably. Eaton's 2020 revenues were $17.9 billion, and we sell products to customers in more than 175 countries. We have approximately 94,000 employees. For more information, visit Eaton.com.
This news release contains forward-looking statements about the expected closing of the sale of our Hydraulics business. These statements should be used with caution and are subject to various risks and uncertainties, some of which are outside of the company's control. Factors that could cause these statements to become untrue include possible delay or difficulty closing the transaction. We do not assume any obligation to update these forward-looking statements.
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