Conti to Invest up to 4 Billion Euros Worldwide
Continental is considering spending as much as 4 billion euros on the acquisition of other companies. This news was given to the German magazine Auto Motor und Sport by company CEO Manfred Wennemer, who said that the company could “finance acquisitions of 3 to 4 billion euro through borrowing without problems.”
According to Wennemer, Conti is considering 30 to 40 candidate companies worldwide for takeover, and the company is looking at expanding its tyre business in the growing Asia region in particular. “In tyres, we are searching in Asia, mainly in China, for takeover targets.” Also specifically named as a focus was India. “As far as our tyre business is concerned, we want to enter the Indian market. It’s the last blank on the world map of our tyres business,” he said.
Although Conti has already established a technical assistance programme with JK Tyre, it has yet to set up its own tyre manufacturing operations in this market. “We are still sounding out the options,” said Wennemer. “In two to three years at the latest, we will know whether we’re favouring a cooperation with a local supplier, a joint venture, a takeover or greenfield facility.”
Also under consideration is an automotive components facility in India, which could be acquired with an investment of Rs 1 billion (£13 million) and would supply components for low-cost manufacturers in emerging markets. Continental has identified several regions in which the division could benefit from further investment. “ContiTech has a backlog in America and Asia,” said the CEO.
Most of the acquisitions under consideration involve an investment of less than 100 million euros each, Wennemer added.