- Continental is considering splitting up the group
Continental AG, a major automotive supplier and tire manufacturer, is exploring the split of its corporate structure into two separate entities: one focused on plastics and tires, and another for its long-struggling automotive supply business. The company is considering a spin-off and separate stock market listing for its automotive supply business, as announced on Monday. Shareholders would then own shares in two distinct companies.
The current Continental corporation would retain the profitable tire business and plastics technology. The goal of a spin-off would be to fully unlock the value and growth potential of the two separate entities, the company stated. Speculation about a separation of plastics and automotive supply has been ongoing due to the latter's recent struggles.
The board is expected to make a decision following a detailed review by the end of the fourth quarter. Following board approval, the transaction is planned to be completed by the end of 2025.
The proposed separation would see the automotive supply business operate independently as a separate entity, much like a spin-off of Continental AG. The newly formed company, focusing on automotive supply, could potentially attract more investment due to its split from the profitable tire business.
