Continental Supervisory Board Supports Assess-ment of Viability of Continental-Schaeffler Combination
- Assessment process open to all options to be completed by the end of July
- Executive Board shall continue to analyze alternatives
In its meeting on Monday, June 8, in Hanover, the Supervisory Board of Continental AG deliberated on various future scenarios for the automotive supplier, including the option of a combination between Continental AG and Schaeffler under the roof of publicly listed Continental AG. In this context, the Supervisory Board has asked the Executive Board to assess all aspects of a combination of Continental and Schaeffler, in particular the financial feasibility of such a combination. This process is to be completed by the end of July. At the same time, the Executive Board shall continue to analyze further alternatives and their possible implementation.
"We must carefully and responsibly determine whether a full combination of Continental and Schaeffler is in the economic interest of Continental AG," said chairman of the Supervisory Board Rolf Koerfer. "The industrial logic of a combination is obvious. We have the great chance of creating the world's second largest automotive supplier based in Germany."
Dr. Jürgen M. Geißinger, CEO of the Schaeffler Group and member of the Supervisory Board of Continental AG, said: "I am convinced that a combination could generate operational and technological benefits for both companies and their customers. The central issue is how the industrial concept can be best implemented. Moreover, the economic and financial opportunities and risks must be carefully weighed up against each other."
According to chairman of the Executive Board Dr. Karl-Thomas Neumann, talks with Schaeffler are progressing very constructively. "Although we are still in the conceptual phase of this process, the industrial know-how we have seen from the Schaeffler Group generates optimism. Schaeffler's expertise in mechatronics and our strengths in the field of electronics and software systems complement each other very well. Alongside the Rubber Group,
Schaeffler's industrial business would substantially improve the necessary balance between the automotive and non-automotive business of the new group. Open to all options, we will now dilligently analyze whether a combination of the two companies, while maintaining access to the capital market, would be viable and value-enhancing for our creditors and shareholders."
Continental Reifen Deutschland GmbH
With sales exceeding €24 billion in 2008, the Continental Corporation is one of the top automotive suppliers worldwide. As a supplier of brake systems, systems and components for the powertrain and chassis, instrumentation, infotainment solutions, vehicle electronics, tires, and technical elastomers, the corporation contributes to enhanced driving safety and protection of the global climate. Continental is also a competent partner in networked automobile communication. The corporation currently employs approximately 133,000 at nearly 190 locations in 35 countries.