The world’s largest tyre manufacturer, Michelin, is interested in acquiring Continental’s tyre division.
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According to a report in the German magazine, Automobilwoche, Michelin’s chief executive, Michel Rollier thinks that there may be an opportunity to acquire the division in the light of the fact that Schaeffler has acquired more than 48% of the shares in Continental in the last few weeks. Schaeffler has repeatedly said that it does not want to break up Continental, but Rollier is nevertheless looking carefully at any potential opportunity, and considering whether there might be anti-competitive restrictions that might prevent a takeover.
Michelin has issued two profit warnings this year and has seen its share price fall 40% since the beginning of the year. It is hoping to expand its business through growth in emerging markets. “We haven’t done that quickly enough in the past,” said Rollier. In the exploding South American market, Michelin is less well represented than its competitors, for example.
Rollier is also working to increase automation, reduce the workforce and close plants. “We have no choice. If labour costs in France or Germany are ten times higher than elsewhere, then we have to compensate for this with higher productivity.
