Conti Executive Board to Assess Viability of Schaeffler Merger
During its June 8 meeting in Hanover, Germany, the Continental AG Supervisory Board deliberated on various future scenarios for the company, including the option of a merger between it and Schaeffler under the umbrella of a publicly listed Continental AG. In exploring this possible course of action, the Supervisory Board has asked Conti’s Executive Board to assess all aspects of a merger between Continental and Schaeffler, in particular the financial feasibility of such a joining. This process is to be completed by the end of July. At the same time, notes Continental, the Executive Board shall continue to analyse 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 Rolf Koerfer, chairman of the Supervisory Board. “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 Continental AG Supervisory Board member, 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 Conti Executive Board chairman 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 diligently analyse 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.”