Continental AG has received the EU Commission’s approval for the acquisition of Siemens VDO Automotive AG without conditions. Antitrust authority approval had already been issued by the national offices responsible.
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This enables Continental to close the transaction in the beginning of December and transfer the purchase amount, EUR11.4bn including tax benefits of around EUR1bn, to Siemens AG. The integration of Siemens VDO into the Continental Corporation will begin immediately after closing.
“We are delighted that, having received the approval of the EU Commission, we can now shortly conclude the purchase of Siemens VDO and, in so doing, take the most momentous step in Continental’s corporate history,” said Continental Executive Board chairman Manfred Wennemer.
“We will soon enjoy the dividends of having quickly pushed ahead with the integration planning, which just got under way some four months ago. At the beginning of December we can jointly tackle the major task of building the new Continental AG – at optimal operating temperature, so to speak. An equally exciting and challenging period lies ahead in which the new Continental team will demonstrate the enormous talent and capabilities it now has at its disposal.”
Upon conclusion of the transaction, Continental will rank globally among the top five in the automotive supplier industry, with sales of more than EUR25bn and approximately 140,000 (Basis 2006) employees.
Continental says the acquisition of Siemens VDO Automotive AG represents for Continental the logical next step in its evolution as an integrated systems supplier.
