EU Commission Approves VDO Purchase
Continental AG reported on November 29 that it has received approval from the EU Commission for the unconditional acquisition of Siemens VDO Automotive AG. Antitrust authority approval had already been issued by the relevant national offices. This enables Continental to close the transaction in early December and transfer the purchase amount, €11.4 billion including tax benefits of around €1 billion, to Siemens AG. The integration of Siemens VDO into the Continental Corporation will begin immediately after closing.
“We are delighted that, having received the approval of the EU Commission, we can now shortly conclude the purchase of Siemens VDO and, in so doing, take the most momentous step in Continental’s corporate history,” said Continental Executive Board chairman Manfred Wennemer. “We will soon enjoy the dividends of having quickly pushed ahead with the integration planning, which just got under way some four months ago. At the beginning of December we can jointly tackle the major task of building the new Continental AG – at optimal operating temperature, so to speak. An equally exciting and challenging period lies ahead in which the new Continental team will demonstrate the enormous talent and capabilities it now has at its disposal.”
Upon conclusion of the transaction, Continental will rank amongst the global automotive supplier industry’s top five, with sales of more than €25 billion and approximately 140,000 (based upon 2006 figures) employees. The acquisition of Siemens VDO Automotive AG represents for Continental the logical next step in its evolution as an integrated systems supplier. At the same time the future product portfolio well covers the expected upcoming megatrends of safety, sustainability and information.