The auto supplier Schaeffler wants to form a specialist in electromobility by taking over the drive specialist Vitesco. Schaeffler is offering Vitesco shareholders 91 euros per paper, 21 percent more than the closing price on Friday. The company announced this. Overall, the two years ago of Continental The spin-off Regensburg company Vitesco was valued at 3.64 billion euros. Since then, the family that owns Schaeffler has held almost 50 percent of Vitesco.
However, the plans have not been agreed with the Vitesco board. Schaeffler is aiming for an “amicable merger,” explained CEO Klaus Rosenfeld. The Schaeffler family who own the company have agreed to initially retain their Vitesco shares. After the takeover has been completed, all Vitesco shares could be exchanged for shares in the merged “new” Schaeffler, a spokesman said. Vitesco shares have increased by 56 percent in the past twelve months. The Regensburg company was initially not available for comment.
The merger of the companies is expected to bring annual cost savings of 600 million euros before interest and taxes. “The business combination will create a leading ‘motion technology company’ with four focused divisions and sales of approximately 25 billion euros,” said Schaeffler in a statement. The two companies complemented each other in electromobility. Vitesco is currently in the process of converting from a manufacturer of parts for combustion engines to a supplier of drive technology for electric vehicles.
Reorganization of the balance of power at Schaeffler
As a result of the Vitesco takeover, the balance of power at Schaeffler AG is also shifting. The family company is aiming to simplify its shareholder structure: the listed preference shares are to be converted into ordinary shares, so that the remaining shareholders are treated equally to the family that owns the ordinary shares. The shareholders must agree to this at an extraordinary general meeting. So far, the family has held all of the rolling bearing manufacturer’s shares; three-quarters of the non-voting assets are in free float.