Examination of a spin-off of the Automotive division
Continental is considering a corporate spin-off. The automotive supplier announced on Monday that, following a strategic analysis, the Executive Board had decided to examine a spin-off of the Automotive sector.
It is possible that the traditional Hanover-based company will then be split into two independent companies. According to the press release, the aim of this is to fully exploit Continental's value and growth potential.
According to the company, the Continental Executive Board's decision to review a spin-off was made against the background of the increasing market dynamics in the automotive sector.
Listing of the Automotive division
According to the press release, the highly profitable Tires and ContiTech divisions will remain with Continental in the event of a split-up. A stock market listing is then planned for the Automotive division.
As with the separation of Vitesco Technologies in 2021, Continental shareholders are to receive shares in this independently listed unit in the event of a spin-off of the Automotive division. The allocation will be in proportion to the respective Continental shareholding.
The Continental Executive Board is expected to decide on the spin-off in the fourth quarter of 2024. The shareholders will then have to vote on the spin-off at the Annual Shareholders' Meeting in April 2025.
Wolfgang Reitzle, Chairman of the Supervisory Board of Continental, explains: "A spin-off from Automotive has the potential to increase competitive opportunities, agility and transparency. Automotive could thus develop its full value creation potential from a strong, independent position in the future."