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Schaeffler wants to take over Vitesco and become a leading supplier in e-mobility

The Herzogenaurach-based corporation plans to take over the Conti spinoff from Regensburg, aiming to become the leading technology provider in the field of electromobility. The portfolio would be complementary.

A "Motion Technology Company" is what Schaeffler CEO Klaus Rosenfeld aims to create from the two suppliers. | Photo: Vitesco
A "Motion Technology Company" is what Schaeffler CEO Klaus Rosenfeld aims to create from the two suppliers. | Photo: Vitesco
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The Herzogenaurach-based supplier group Schaeffler aims to acquire the Regensburg-based electric drive specialist Vitesco, a 2019 spin-off from Continental, and thereby form a leading technology provider in the field of electromobility. Schaeffler CEO Klaus Rosenfeld had informed the competitor about this. According to the Süddeutsche Zeitung, Vitesco board member Andreas Wolf reacted rather reservedly. "The board and the supervisory board of Vitesco Technologies will carefully review all information and decide on the next steps," came the response from Regensburg. Schaeffler board member Rosenfeld stated that they want to create one of the "leading German suppliers in terms of electromobility, and on a global level." He spoke of a "leading motion technology company" and wooed Vitesco shareholders with an offer of 91 euros per share. He said it was a generous offer.

There is a "strategic and technological logic" because the portfolios of the two Bavarian tech companies would complement each other. This would allow them to present a "seamless product range," including in the parts and components sector as well as in the drive, industrial, and spare parts business where significant synergies lie. "Schaeffler and Vitesco are stronger together," Rosenfeld believes and promises "significant advantages for customers, employees, shareholders, and business partners." He estimated the costs at 665 million euros, from which by 2029 annual profits of 600 million euros (before taxes and without interest) would be derived. The funds for the acquisition are estimated at 1.8 billion euros, which would be secured by a consortium led by Bank of America, according to Rosenfeld. The combined company would stand for a turnover of 25 billion euros, with 120,000 employees across more than 100 factories and 44 research and development centers.

Curiously, the largest shareholder at Vitesco is the Schaeffler family, through mother Maria-Elisabeth and son Georg Schaeffler, who hold a 49.9 percent stake through the family holding. Therefore, only 25 percent more of the shares would be needed for a 75 percent majority at the general meeting. Rosenfeld wants to close the deal quickly and get the offer approved by the financial regulator Bafin by November 15. The companies could be merged by the end of 2024, provided they gain approval at their general meetings.

Translated automatically from German.
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