Continental Buying Siemens VDO

25 July 2007

Continental AG is buying Siemens VDO Automotive AG for €11.4 billion (US$15.6 billion). The combined companies will have aggregate annual sales of around €25 billion (US$34.3 billion) with a worldwide workforce of close to 140,000.

By joining forces, pooling our innovative prowess and allying our leading positions worldwide in key market segments like safety, chassis, powertrain systems and telematics/infotainment, we are extremely well placed to take on the global competition and to profit from all mega-trends in our branch of industry.

—Manfred Wennemer, Continental Executive Board chairman

In addition to technologies for active and passive vehicular safety and traffic management, the new company will work to expand its role as an innovator in powertrain systems, including electric motors, hybrid technology and engine and transmission management systems.

Contingent on the approval of the respective antitrust authorities, Continental expects closing of the transaction prior to the end in the fourth quarter 2007. The integration will be concluded by the end of 2009, with the majority to be completed already next year.