The Continental AG logo can be seen in front of the automotive supplier's headquarters. The automotive supplier and tyre manufacturer Continental is planning to split up the company. (picture alliance/dpa | Moritz Frankenberg)
The automotive supplier and tyre manufacturer Continental is planning to split up the company and wants to divest itself of its automotive supplier division, which has been flagging for a long time.
For a long time, the management around CEO Nikolai Setzer publicly refuted reports and speculation in this direction. Now, however, the main divisions of the company could go their separate ways in order to be more successful on their own. Of the stock market value of over 45 billion euros in the years leading up to 2018, only around 10 billion is currently left.
"In recent months, the markets and our customers have developed very dynamically, particularly in the automotive industry," said CEO Setzer according to a press release. Strong regional fluctuations in market developments and the software-driven technology transformation will require more flexibility and far-reaching entrepreneurial room for manoeuvre in the future, he said. "Against this background, we are endeavouring to split up Continental."
A separation and separate stock market listing of the automotive supplier business is now being considered as part of a so-called spin-off, as the DAX-listed company announced. The company is examining the necessary steps. The shareholders would thus become owners of two separate groups. One part would continue to include the profitable tyre division and plastics technology. The other would consist of the businesses with brakes, electronics, displays and other parts for the automotive industry.
The board is expected to decide on a spin-off in the fourth quarter following a detailed review. The annual general meeting must then give its approval next year. If approved, the transaction is expected to be completed by the end of 2025.
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