Possible stock market listing for Continental’s automotive division. The German company is in fact evaluating a spin-off of its automotive unit and entry into the Frankfurt stock exchange. The decision would effectively split the company in two, taking on one side all the production that also concerns components such as brakes and automated driving systems. Continental’s automotive division business closed 2023 with sales of 20.3 billion euros and can count on around 100,000 employees. On the other side, ContiTech, which also deals with tires and plastics, stopped at 20.8 billion euros and has a similar number of employees.
Continental’s Choice
“The goal of a spin-off would be to fully exploit the value and growth potential of the two then separate groups,” Continental said in a statement released in recent days. Philipp von Hirschheydt, currently head of the division, would be the new CEO of the listed company. According to Automotive News Europe, the automotive part of ContiTech would therefore be spun off in this spin-off and the previously announced plans to spin off the User Experience division within the automotive division would be frozen.
Fighting the crisis
The decision to list part of Continental on the stock exchange stems above all from the difficulties in terms of profitability that the company is facing, difficulties that have also led to the dismissal of over 7,000 employees worldwide and the closure of some production sites. The need to reduce costs and continue to invest has pushed the company to evaluate the spin-off. To proceed, Continental will also need the approval of the Schaeffler family and will have to pass the approval of the annual shareholders’ meeting next April. The listing on the stock exchange would therefore take place by the end of 2025.
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