Schaeffler Launches Offer for Vitesco Technologies to Create Leading Motion Technology Company

Germany's Schaeffler AG has launched a public tender offer for all outstanding shares in Vitesco Technologies Group AG to create a leading motion technology company. It will include four focused divisions including a combined e-mobility division.

The tender offer is the first step of an overall transaction that will lead to a merger of Vitesco Technologies Group AG into Schaeffler AG.

Schaeffler says the two companies have complementary technology portfolios, allowing the combined company to leverage the accelerating growth opportunities in e-mobility.

Schaeffler and Vitesco will also be able to optimise profitability in conventional powertrain technologies, which will retain an attractive margin and cash profile, as well as in chassis and the automotive aftermarket business.

 The Boards of Vitesco Technologies says they will carefully evaluate all information and will decide on the next steps.

Vitesco was spun off from Continental AG.

Klaus Rosenfeld, CEO of Schaeffler AG, says: “With the launch of the tender offer today, we are initiating a transformative move for Schaeffler. By combining Schaeffler and Vitesco, we will build a leading Motion Technology Company with four focused ‘pure-play’ divisions, a balanced well-diversified portfolio, and critical scale across its businesses. This includes a best-in-class e-mobility champion with significant growth potential. The combination will make Schaeffler and Vitesco stronger together and is beneficial for customers, employees, shareholders and business partners.”

Georg F.W. Schaeffler, family shareholder and Chairman of the Supervisory Board of Schaeffler AG, adds: “Considering the significant benefits that the overall transaction brings to all stakeholders, we are convinced that now is the right moment to do so, enabling us to take the next big step in the development of our company. By combining Schaeffler and Vitesco, who have a strong cultural fit, we will forge a leading Motion Technology Company.”

Germany's Schaeffler offers solutions for everything from e-cargo bikes to electric aircraft, and technologies ranging from electric motors to thermal management.