Iochpe-Maxion SA, a Brazilian auto-parts maker, jumped to a one-year high as the U.S. Federal Trade Commission approved its purchase of Hayes Lemmerz International Inc.
Shares rose 5.1 percent to 24.69 reais at the close of Sao Paulo trading, making it the best performer on the BM&FBovespa Small Cap index, which was little changed at 1,207.30.
Iochpe-Maxion said in a regulatory filing on Oct. 5 it agreed to acquire the U.S.-based rival for $702 million plus the assumption of $23 million in debt. The purchase was approved by U.S. antitrust regulators, the company said in a filing today.
“We were expecting the deal to be approved in the first half of 2012,” Banco J. Safra analysts Cassio Lucin and Caroline Dalago wrote in a note to clients. “As a result, we should see a stronger 2012 first quarter.”