Vitesco, Schaeffler Announce Business Combination Agreement

(RTTNews) - Schaeffler AG (SCFLF.OB) has entered into a Business Combination Agreement with Vitesco Technologies Group AG to create a Motion Technology Company. The combined company will offer a complete range of products, particularly in the area of electrification. Also, Schaeffler decided to increase the offer price for the ongoing tender offer from 91 euros to a best and final price of 94 euros per Vitesco share. The acceptance period for the tender offer expires on December 15, 2023. The completion of the overall deal is expected to take place in the fourth quarter of 2024.

The combined company will have annual pro-forma sales of around 25 billion euros and employ more than 120,000 people. The combination offers significant synergy potential with an expected EBIT effect of 600 million euros per year, which would be fully reached in 2029.

Schaeffler and Vitesco also agreed to establish an integration committee to ensure a smooth integration process.