By Ilona Wissenbach and Alexander Hübner
BERLIN (Reuters) -Continental is considering a spin-off and subsequent listing of its automotive unit on the Frankfurt stock exchange, with an executive board decision expected in the fourth quarter, the German automotive parts and tyres maker said on Monday.
Disruptive changes in the industry and volatile financial markets drove the decision, Chief Executive Nikolai Setzer told analysts and investors in a call after the announcement.
A spin-off could be submitted for approval at the annual shareholders’ meeting next April, with the unit listed by the end of next year, it said.
The required steps for implementing a spin-off are already being prepared, said the auto parts and tyres maker.
Continental has been struggling for several years with low profitability in its automotive supplier business, whose portfolio ranges from brakes to sensors and assistance systems.
With the move, Continental would effectively be halved: In 2023, the automotive division had sales of 20.3 billion euros ($22.31 billion) and about 100,000 employees, while ContiTech,…
