Ball bearing specialist Schaeffler Group has made a formal offer to the shareholders of Continental AG of EUR70.12 a share in cash.
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A Schaeffler statement said the offer was “A fair price that is attractive for the shareholders of Continental AG.” Its offer is open until 27 August.
“Schaeffler Group is aiming for a rapid agreement in the interest of all parties involved,” the statement said, adding that Germany’s Federal Financial Supervisory Authority (BaFin) had approved the offer document.
Schaeffler said the offer price of EUR70.12 a share in cash corresponds to the weighted average price during the last three months before announcement of the takeover offer on 15 July. Shares were trading at just over EUR72 earlier on Wednesday.
“We offer a fair price that is attractive for the shareholders of Continental AG. Now we should leave it to the shareholders to evaluate our offer and make a decision”, said Schaeffler group president Juergen Geissinger.
Schaeffler said it was “seeking to acquire a strategic shareholding of more than 30% in Continental “to achieve a stable shareholder structure… to enable implementation of the Schaeffler group’s objectives and, thus, to safeguard the long-term investment in the company”.
“A purely financial investment does not, therefore, meet the objectives of the Schaeffler Group.”
Continental would benefit from Schaeffler’s strengths in mechanical, mechatronic and precision components for engines, transmissions and chassis, while Continental would contribute its strengths in electronic and software systems for engines, chassis and interiors, the statement said.
“Companies that want to offer innovative complete solutions from one source as a development partner to the worldwide automotive supply industry, clearly improve their future opportunities by integrating mechanical, mechatronic, electronic and software expertise,” said Geissinger.
Public statements of customers of both companies from the automotive industry show that they view a possible alliance between Schaeffler und Continental as positive, but also want a rapid agreement, Schaeffler said.
“The employees and customers of both companies expect a rapid and constructive solution. We take these expectations seriously. We remain determined to come to a rapid agreement with Continental AG’s management that is in the interests of all parties involved. Regardless of the previous rejection of our offer, we can see a great opportunity for this, because we remain prepared to continue Continental AG’s existing strategy, which we explicitly support, together with the management”, added Geissinger.
Schaeffler reiterated Continental would remain independent, based in Hanover, and said it would not break it up or sell off the tyre business, a major fear of Continental’s unions.
“Continental AG will continue to be listed on the stock exchange, if possible in the DAX. There will be no transfer or reduction in jobs resulting from the takeover offer,” Schaeffler said.
A Continental spokeswoman said the company was aware of the offer and would respond in due course.
A European media report said a successful Schaeffler take-over of Continental would be the biggest so far this year in Europe and would pit the combined group directly against Bosch as the world’s second-largest components supplier behind Denso.
Conti resists overture for now
