Published by Global Banking and Finance Review
Posted on December 18, 2024
(Reuters) - The German tire and auto parts maker Continental plans to complete the listing of its automotive unit on the Frankfurt stock exchange by the end of 2025, it said on Wednesday.
It also reiterated that Original Equipment Solutions (OESL), its business that supplies rubber products to automotive manufacturers, will be made independent in the near future, with the sales process starting in the first quarter of 2025.
Continental has aimed to spin off part of its business as European carmakers face hurdles including high costs and Chinese competition, which in turn is hitting their suppliers.
Continental had announced job cuts in its automotive division in February.
“The Executive Board’s decision is an important milestone in steadily increasing the value of Continental," said Wolfgang Reitzle, chairman of Continental’s Supervisory Board, in a statement.
"I firmly believe that the Automotive spin-off will unlock new strengths, because focused companies are more agile, especially in times of transformation."
(Writing by Matthias Williams, editing by Andrey Sychev)
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