Continental evaluates automotive business spin-off

Continental has decided, following a strategic review, to conduct a further detailed evaluation on spinning off the automotive group sector. Following its detailed evaluation, the Executive Board will make a decision on the spin-off in the fourth quarter of 2024.

Subject to the approval of the Executive Board and Supervisory Board, a spin-off and listing of Automotive would then be put to a vote by the Annual Shareholders’ Meeting of Continental AG on April 25, 2025. If approved, the plan is to complete the spin-off by the end of 2025.

As part of the setup, the profitable Tires and ContiTech group sectors would remain under the umbrella of Continental. This structure will also be part of the detailed evaluation. The Supervisory Board of Continental AG was informed of the Continental Executive Board’s decision at its meeting yesterday.

“Our strategy aims to increase our value creation. This involves systematically analyzing how we can best position our group sectors for success. Markets and customers, especially in the automotive industry, have evolved extremely dynamically in recent months. Looking ahead, sharply fluctuating regional developments in the markets as well as the software-driven technology transformation will require even greater flexibility and entrepreneurial freedom. Against this backdrop, we are aiming to divide Continental into two independent companies,” said Continental CEO Nikolai Setzer in Hanover on Monday.

“A spin-off of Automotive has the potential to create competitive opportunities, enhance agility and increase transparency. As a strong, independent entity, Automotive would be able to harness its full potential for creating value. In addition, investors would be able to invest in a company focused specifically on automotive electronics,” said Prof. Wolfgang Reitzle, chairman of the Continental Supervisory Board. “We will have the interests of all employees firmly in mind when conducting the detailed evaluation – they too would benefit from having two strong, independent companies,” added Setzer.

As with the spin-off of Vitesco Technologies in September 2021, Continental shareholders would receive shares in an independently listed Automotive entity in proportion to their Continental holding.