Continental AG has received EU Commission approvals to acquire the automotive electronics business of Motorola.

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The parties have also received early termination of the waiting period under the US Hart-Scott-Rodino Antitrust Improvements Act.


The transaction includes Motorola’s vehicle control, sensor, and interior electronics, as well as its telematics businesses. The integration of the acquired business of EUR1.3bn (sales 2005) into Continental’s EUR5.2bn Automotive Systems Division will begin as planned immediately after closing of the transaction.


The closing of the transaction is expected to take place in July 2006.


Continental says that the transaction significantly increases its product portfolio and R&D capabilities in body and sensor electronics as well as powertrain and chassis controls.

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The company says it also adds telematics as a new, complementary technology to Continental’s product portfolio. 


“Motorola’s automotive electronics business is a perfect fit with our strategy of providing sophisticated safety systems to our customers,” said Continental’s Executive Board chairman Manfred Wennemer.


“Our strategic move will give us a real push forward in automotive electronics and opens the gate to the field of telematics. Also, approximately 4,500 highly motivated and innovative employees are joining the successful team of more than 80,000 highly skilled Continental employees worldwide.”