Continental AG:Continental acquires Siemens VDO for €11.4 billion
Continental AG / Miscellaneous/Miscellaneous
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Continental acquires Siemens VDO for € 11.4 billion
Continental acquires the automotive products business concentrated in the
Siemens VDO Automotive AG for €11.4 billion from Siemens AG, Berlin/Munich.
The purchase price includes future tax benefits for Continental which have
been determined at approximately one billion Euro and which do not result
in any loss of revenue for the tax authorities. The supervisory boards of
Siemens AG and of Continental AG approved the transaction in Munich and
Hanover respectively on Wednesday. Execution of the acquisition is
contingent on the approval of the appropriate antitrust authorities.
On the basis of 2006, Continental and Siemens VDO realize aggregate annual
sales of around 25 billion euros with a workforce of close to 140,000.
Thus, Continental advances to a position among the top five worldwide in
the automotive supply industry.
Continental anticipates a net synergy potential in the order of at least
€170 million a year as of 2010. Assuming no delays in antitrust clearance,
closing of the transaction should occur towards the end of the fourth
quarter. Integration will be concluded by the end of 2009.
Continental has secured a financing package that is targeted at meeting its
goal of attaining a continued solid credit rating of BBB or Baa2.
Continental is currently rated BBB+ and Baa1. Neither the sale of the
ContiTech-division nor of any of the tire divisions is planned.
DGAP 25.07.2007
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Language: English
Issuer: Continental AG
Vahrenwalder Straße 9
30165 Hannover Deutschland
Phone: +49 (0)511 938-1068
Fax: +49 (0)511 938-1080
E-mail: ir@conti.de
Internet: www.conti.de
ISIN: DE0005439004
WKN: 543900
Indices: DAX
Listed: Amtlicher Markt in Berlin, Wien, Frankfurt (Prime Standard),
Hannover, Hamburg, Luxembourg, SWX, Stuttgart; Freiverkehr in
München, Düsseldorf; Terminbörse EUREX
End of News DGAP News-Service
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