From AFX News Limited
FRANKFURT — Continental AG has announced that it plans to split Continental Automotives Systems (CAS), its largest division, into three divisions in order to integrate the recently acquired Siemens AG VDO unit.
After the restructuring, Continental plans to have six divisions including chassis and safety, powertrain and interior to complement the existing three divisions of car tyres, truck tyres and Contitech.
Continental acquired Siemens’ automotive systems division VDO for approximately $15.51 billion. Continental said it still plans to close the transaction by the end of the year, pending approval from regulatory authorities, and maintains its estimate of annual synergies of approximately $231 million from 2010.
Continental’s Chief Financial Executive Alan Hippe said the company will start to gather financing for the acquisition this week. The syndication of credits, worth approximately $18.37, will run until the end of September, he said.
Copyright 2007 AFX News Limited. All Rights Reserved.