By the end of next year, ContiTech will be an independent company, and Continental will once again be primarily a tyre maker. At a meeting today, the Continental Executive Board decided in favour of the group sector’s autonomy, thereby setting in motion a preparatory phase that will involve analysing and assessing the potential forms of transaction for the business’s independence and drawing up a specific timetable for implementation.
TBC Corporation, one of the largest wholesale and franchise marketers of car tyres in North America, has agreed to divest its Midas business to Mavis Tire Express Services Corp. This deal follows TBC’s divestment of NTB Tire and Service and Tire Kingdom to Mavis in 2023.
South Korea’s HS Hyosung Advanced Materials has addressed speculation regarding a potential sale of its tyre steel cord business. While the company confirms that changes may be afoot, it denies being close to reaching a final decision.
Knorr-Bremse, global market leader for braking systems and a leading supplier of other rail and commercial vehicle systems, has completed the sale of its subsidiary GT Emissions Systems to Rcapital Partners, a private equity fund from the UK. GT Emissions Systems, based in the Durham town of Peterlee, supplies emission control systems for diesel engines in on-highway commercial vehicles and off-highway vehicles. The transaction closed on 22 January.
Following the closure of the Bridgestone (Huizhou) Tire Co., Ltd. (BSHZ) truck tyre plant in China late in 2021 and the relocation of its manufacturing to Shenyang, the former plant assets in Huizhou, Guangdong Province remained Bridgestone’s property. The company today agreed to sell all shares in BSHZ to Huizhou Zhongkai Xinye Development.
Yesterday German newspaper FAZ named S8 Capital as the likely buyer of Continental’s business in Russia, including its tyre plant in Kaluga. Russian newspaper Kommersant adds further weight to the notion of a transaction involving the holding company.
In statements published today, Bridgestone Corporation announced the intention to sell its anti-vibration rubber and chemical products solutions businesses. The company expects the respective deals will close by the end of July and end of August 2022.
Another company within Bridgestone Corporation’s Diversified Products business will soon have a new owner. Bridgestone Sport Co., Ltd. (BSP) is selling all its stock in Bridgestone Tecnifibre Co., Ltd. (BSTF), a Thailand-based manufacturer and seller of tennis balls, to Japanese sport equipment company Yonex Co., Ltd. BSP withdrew from the tennis goods business at the end of 2020.
The Yokohama Rubber Co., Ltd. has completed the transfer of its Hamatite business to Swiss-based speciality chemicals company Sika Group. The transaction took place according to the schedule announced on 28 April.
Trelleborg Group has signed an agreement to divest a technical rubber products operation. It is selling the company, which has its main business located in Nachod, Czech Republic, to Kaprain, a Czech investment group.
Yokohama has sold its Hamatite automotive and construction sealent business to Swiss company Sika Group AG in a transfer that is scheduled to be completed on 1 November 2021. Yokohama hasn’t released exactly how much Sika is paying for the Hamatite business, but management expects to post a gain on the sale of about ¥5 billion (£33 million; 38 million euros; US$46 million – after tax). However, the exact amount is said to be “subject to change”.
At the unveiling of its ‘Michelin in Motion’ strategic plan on 8 April, the Michelin Group presented a strategy for 2030 that shows a determination to expand in non-tyre businesses. In this spirit of expansion beyond tyres, yesterday the company announced the signing of a Partnership Agreement with Altaris Capital Partners.
Bridgestone Corporation reports that its Bridgestone Americas, Inc. subsidiary has completed the sale of Firestone Building Products to Holcim Participations (US) Inc, a subsidiary of LafargeHolcim Ltd. (LafargeHolcim). According to the Japanese company, the US$3.4 billion transaction will “advance Bridgestone’s efforts to deliver value to customers and society as a global leader providing tyres and advanced mobility solutions.”
Following the reports that Continental is in talks to sell off various parts of its wider group, analysts have responded positively to Siemens’ recent sale of its Energy division, saying it is good for Conti.
Upgrading their rating to “buy”, Jefferies analysts said: “Siemen’s recent spin-off of Energy gives confidence that Conti’s share price will benefit from its planned spin-off of Vitesco as the combined market cap of Siemens and Energy was up 7 per cent on the day of transaction (DAX +3%)” The implication, they explained, was that there was a discount in Siemens’ sum-of-the-parts valuation. That being the case, given Conti’s “more attractive transaction structure”, the analysts predicted that Conti’s “re-rating should be more pronounced.”
The recent news that Continental AG will close its Aachen, Germany tyre factory underlines the fact that it is aiming to cut 13,000 of 59,000 jobs in Germany as part of a major group-wide cost-cutting programme. Now, the German Manager Magazin is reporting that Continental is also considering the sale of parts of the wider group. Indeed, Continental is said to be in talks “already with prospective customers”. The Rubber Technologies business sector, which includes Continentals Tire and ContiTech division is also said to be affected.
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NRZ, Arno Borchers