Schaeffler claims plans to end the mutual investment agreement with Continental are because the deal “no longer has any practical relevance for either company.”
In place since 2008 with the involvement of former German Chancellor, Gerhard Schroder, the investment deal will now end in May next year and finishes the relationship between the two companies with Schaeffler being Continental’s major-single shareholder taking a 49.9% stake.
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“The investment agreement no longer has any practical relevance for either company since key provisions of the agreement expired in August, 2012,” said Schaeffler shareholders, Maria-Elisabeth Schaeffler and Georg Schaeffler.
“We consider our investment in Continental a long-term strategic investment aimed at sustainably increasing the value of Continental AG.”
For his part, Continental CEO, Elmar Degenhart, said: “Notice of termination of the investment agreement is understandable from the vantage point of Schaeffler, our anchor shareholder.
“We are confident the two companies will continue their very good and goal-oriented cooperation on into the future.”
Continental in Germany was not immediately available for comment.
