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Schaeffler and Continental reach agreement

Family-owned Schaeffler Group has emerged victorious from its efforts to gain control over rival Continental, albeit with a number of concessions.
The ball bearings manufacturer, which launched a hostile takeover bid in July, has signed an investor agreement that limits its investment in Continental to a minority stake of no more than 49.99%.
It will support the management board's existing strategy and business policies, while maintaining Continental's current market and brand identities. It also agrees neither to demand the sale of any assets nor to insist on any other fundamental structural changes.
To secure the deal, Schaeffler raising its offer to €75 per share and guaranteed up to €522 million in compensation for any unfavourable effects due to a change of control.
In addition, Gerhard Schroeder, the former German Chancellor, has been enlisted to ensure that the interests of all of Continental's stakeholders will be protected.
The two companies have agreed to investigate opportunities for strategic collaborative opportunities between both parties once the takeover has been approved.
"From the very beginning, we have sought a constructive agreement that would be in the interest of both companies, their employees, customers, and shareholders," said Juergen Geissinger (pictured), Schaeffler's non-family CEO.
"In doing so, we are laying the groundwork to combine the strengths of two of Germany's technological leaders; a combination that will deliver innovative solutions for the future challenges facing the automotive industry," he continued.

Related link:
Schaeffler launches hostile takeover bid for Continental

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