German car parts supplier Continental and its owner Schaeffler will not pursue a complete merger for now, according to German news reports.

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Handelsblatt said the two companies would “co-operate in various sectors and that they are seeking closer ties regarding projects for engine components”.


Last Wednesday, Continental’s supervisory board agreed to a capital increase of over EUR1bn (US$1.46bn). The 31m shares to be issued will be subscribed by a bank consortium on behalf of institutional investors.


The two companies plan no tie-up in the next 12 months, according to sources close to Continental’s supervisory board.

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