Continental AG is on the verge of completing the sale of its Contitech division to US private equity firm Lone Star Funds, the company confirmed on Friday afternoon.
The board of management and supervisory board have approved the transaction, signaling that the deal is in its final stages.
This development follows earlier reports from Handelsblatt that valued the transaction at approximately €4 billion.
This development follows earlier reports from Handelsblatt that valued the transaction at approximately €4 billion.
Shares of Continental rose in trading following the announcement, reflecting investor approval of the strategic move.
The divestment allows the automotive supplier to streamline its portfolio and focus on core technologies, while raising capital to strengthen its balance sheet.
Lone Star’s acquisition of Contitech underscores the continued interest of financial investors in established industrial assets with stable cash flows.