Continental AG has decided to spin off its ContiTech business unit in order to solely focus on its tire division.
Continental expects to divest ContiTech after it spins off the company’s Automotive business, a development that MTD first reported on this past December.
“Continental has already laid the groundwork for its realignment with the planned spin-off of its Automotive group sector and aims to position the three group sectors – Tires, ContiTech and Automotive – as strong, independent companies,” say Continental officials.
“With this move, ContiTech will operate independently as a material solutions specialist with a strong industrial focus. Continental AG will therefore become a global company focused on tires. In a last step, the still overarching holding functions will then be transferred to Continental AG”
“Over the past 30 years in particular, Continental has used targeted acquisitions and organic growth to build up three strong group sectors in their respective industries,” says Continental CEO Nikolai Setzer. “These are now ready for independence. Today’s highly dynamic markets also call for focused, agile and decisive action. Now is therefore the right time to initiate the most far-reaching realignment in the company’s history. We are creating three strong, independent champions that will achieve their full growth and value creation potential as independent companies.”
