Conti Expresses Concerns over MAG Group Clairoix Acquisition
Continental has voiced concerns over MAG Group’s proposed acquisition of the German manufacturer’s beleaguered Clairoix facility following its receipt of the Syrian company’s letter of intent, reports Reuters. Mail-based discussions are ongoing, says the report, with MAG vice-chairman for strategy and finance Fawaz Sabri quoted as saying, “We sent… an amended version of the letter of intent and are awaiting their response. We have put everything down and all our concerns,” he told Reuters. Conti spokesman, Alexander Luehrs said that the main points of contention were the price and the transference of technology. The German manufacturer clearly wishes to protect its technology against producing a potential competitor.
It seems Conti’s concerns are justified, as Sabri told reporters that the MAG Group, which so far only supplies tyres, has been looking to acquire a manufacturing facility for around 15 years, enabling the company to produce product itself. However, it is only in the current financial climate that such facilities have become available. MAG seems eager to begin its new project, as it said in a separate statement: “MAG hopes to get started, as soon as practicable, with a thorough process of information-gathering about the plant and its resources, with a view to negotiating a mutually fair acquisition deal.” Conti, however, seems keen to get a fair price – or block the move altogether – for MAG’s piggy-back on its technological knowledge: “It has taken us a long time to arrive where we are,” Luehrs told Abu Dhabi’s The National. “MAG has no experience in producing tyres, so they need the basic know-how. Of course we won’t sell our most precious asset.”