The Schaeffler Group has completed its planned takeover of Continental AG, paying 75 euros (approximately $100) per share to the depositary banks of those who tendered their shares to Schaeffler.
As a result of all the recent share trading, Schaeffler Group holds 49.9 percent of the voting stock of Continental AG and is therefore the company’s largest shareholder. At the peak of the complicated transaction, Schaeffler Group held up to 90 percent of Conti stock, although Schaeffler has now transferred the additional shares tendered to financial institutions.
“The conclusion of the takeover clears the way for integrating the companies quickly and in a pragmatic manner. Against the backdrop of the financial crisis and the market changes in the automotive industry, both companies are facing great challenges and have no time to lose. Constructive cooperation and concentration on factual issues and business matters is all important now. This is also what our staff and customers expect from us,” explained Juergen Geissinger, Schaeffler Group president and CEO.
In the company’s completion statement, Geissinger again failed to define Continental AG’s highly profitable tire and rubber businesses as “strengths.” While he did remark that the combined companies will bring together “Schaeffler’s strengths in mechanical, mechatronic and precision components for engines, transmissions and chassis and Continental’s strengths in electronics and software systems for engines, chassis and vehicle interiors” the fact that he did not mention tires or rubber products means there are still question marks over the future of these parts of the business. (Courtesy of Tire Review/Tyres & Accessories)