Analysts: Continental/Matador Deal “Logical”

Describing the deal as “logical” Deutsche Bank analysts have estimated that the cost of the 51 per cent Matador stake Continental AG recently purchased should be “in the low triple digit million euros.” This is consistent with earlier reports (published in Tyres & Accessories at the third quarter of 2006), which predicted the deal would cost around 150 million euros.

Summing up the benefits of the deal for Continental the analysts said: “Via Matador Continental gets a further plant in Russia, access to a 24 per cent stake in its combined venture for truck tyres as well as a small addition to Contitech (Matador also produces conveyor belts),” adding: “Since the tyre industry is global, the group should logically in the future make acquisitions outside Europe if they want to become a more global player in the industry.”