A ‘Once in a Lifetime’ Opportunity
Having just been given the nod to proceed with the largest acquisition in its 136 year history, Continental AG is set to become one of the top five worldwide automotive suppliers. Following the July 25 granting of consent from the supervisory boards of both Continental and Siemens, the 11.4 billion euro purchase of the latter’s VDO Automotive division was approved subject to permission from antitrust authorities.
Based on 2006 figures, the combined annual sales of Continental and Siemens VDO Automotive AG will reach around 25 billion euros, and the resulting company will boast a global workforce of close to 140,000 employees. “Together Continental and Siemens VDO Automotive AG, two companies rich in tradition and endowed with an enormous performance capability, have the once-in-a-lifetime opportunity to forge a global frontrunner in the automotive supplier sector,” said Continental Executive Board chairman Manfred Wennemer. “By joining forces, pooling our innovative prowess and allying our leading positions worldwide in key market segments like safety, chassis, powertrain systems and telematics/infotainment, we are extremely well placed to take on the global competition and to profit from all mega-trends in our branch of industry.