Pirelli Interested in Continental Truck Tyre Unit
Pirelli is said to be interested in buying the truck tyre division of Germany’s Continental AG, German news sources have reported. “We are looking at all attractive targets. Truck tyres are definitely interesting for us,” Pirelli Chairman Marco Tronchetti Provera told the Handelsblatt newspaper.
Continental’s management recently scrutinised the truck tyre department’s first-quarter figures after its pre-tax earnings (EBIT) margin of 3.8 per cent came in below the company’ target of 10 per cent for all divisions by 2010. The announcement lends credence to suggestions that Pirelli is aiming to expand its tyre business through acquisitions.
Marco Tronchetti Provera also suggested that the Pirelli Group is aiming to strengthen its property business in Germany: “Real estate prices are lower in Germany than in other European countries,” he told Handelsblatt.