Conti Expresses Openness to MAG Clairoix Proposal

As of May 6 Continental AG reports that its talks with Dubai’s Moaffaq Al Gaddah (MAG) Group are ‘continuing’, with discussions centring on jointly defining the terms of a possible takeover proposal for Conti’s Clairoix plant. This meeting began the day after management from MAG visited the French factory, 24 hours later than originally planned – the visit was delayed for a day at the request of France’s Ministry for the Economy, Finances and Employment on safety grounds, the site having been closed temporarily following the destruction of fire prevention, alarm and surveillance systems.

“Since they informed us of their interest in the Clairoix plant, approximately a month ago, we have met with those at MAG charged with the matter on several occasions and exchanged a host of information with them,” stated Nikolaï Setzer, head of Continental’s Passenger & Light Truck Tires division. “We continued this dialogue this week, with a presentation of the plant’s technical and industrial details at a meeting in Paris on Monday and then at the Clairoix site on Tuesday (May 5). This morning we shall propose to MAG that negotiations be entered into with regard to a takeover offer. We are working on this subject in a totally professional manner.”

Continental says that its talks with MAG dealt with a transfer of the plant and its full production capacities, including its personnel, equipment and know-how. The German firm stated in a press release dated May 6 that, should terms be reached on this, the MAG project will be submitted for the consideration of the representative boards of Continental France.

“Within the framework of the current talks, Continental is showing a real open-mindedness with respect to a potential proposition on the part of MAG, also providing MAG support and technical assistance,” elaborated Nikolaï Setzer.