* Integration into Continental's Automotive Systems Division will begin as
planned after closing
* Strategic move of leading automotive supplier strengthens global presence
and product portfolio
HANOVER/FRANKFURT am Main, Germany, June 23 /PRNewswire/ -- Continental
AG has received approvals to acquire the automotive electronics business of
Motorola, Inc. (NYSE: MOT) from the EU Commission, which announced
clearance of the transaction in Brussels, Belgium today. As previously
announced, the parties have also received early termination of the waiting
period under the U.S. Hart-Scott-Rodino Antitrust Improvements Act. The
transaction includes Motorola's vehicle control, sensor, and interior
electronics, as well as its telematics businesses. The integration of the
acquired business of EUR 1.3 billion (sales 2005) into Continental's EUR
5.2 billion Automotive Systems Division will begin as planned immediately
after closing of the transaction. The closing of the transaction is
expected to take place in July 2006.
The transaction significantly increases Continental's product portfolio
and R&D capabilities in body and sensor electronics as well as powertrain
and chassis controls. It also adds Telematics as a new, complementary
technology to Continental's product portfolio and further enhances
Continental's position as a leader in active and passive vehicle safety. It
will allow Continental to intensify and expand the integration of features
that help avoid crashes with features of post crash safety/emergency
assistance of occupants.
"Motorola's automotive electronics business is a perfect fit with our
strategy of providing sophisticated safety systems to our customers," said
Continental's Executive Board chairman Manfred Wennemer. "Our strategic
move will give us a real push forward in automotive electronics and opens
the gate to the field of telematics. Also, approximately 4,500 highly
motivated and innovative employees are joining the successful team of more
than 80,000 highly skilled Continental employees worldwide."
Continental is one of the leading automotive suppliers worldwide and
has been constantly expanding its core competencies in vehicle dynamics,
reaching EUR 13.8 billion (US$ 17.2 billion) in sales in 2005. Motorola's
automotive electronics business was a component of its Networks &
Enterprise business. The automotive electronics unit has manufacturing
facilities and development engineering centers in North America, Japan,
China, Mexico, France, U.K., and Germany.
"There are three major fields of growth in the automotive industry as
we see them today: hybrid drives, Driver Assistance Systems -- and
Telematics," said Dr. Karl-Thomas Neumann, President of Continental's
Automotive Systems Division. "With comprehensive vehicle safety and traffic
management becoming more and more critical aspects of global mobility,
Continental added a key future element to its product offering. We see
great potential by integrating Telematics into embedded car-to-car digital
communication and vehicle-to- infrastructure communication. We are very
excited about the opportunities ahead," he said. "It is indeed a perfect
fit. The integration of Motorola's automotive electronics businesses will
double the overall sales of Continental's Automotive Systems division in
North America," Neumann said. "In addition to Telematics, we enhance our
position in the fields of intelligent safety systems, hybrid electronics,
powertrain and chassis controls, and body electronics categories."
The Continental Corporation is a leading supplier of brake systems,
chassis components, vehicle electronics, tires and technical elastomers. In
2005 the corporation realized sales of EUR 13.8 billion. At present it has
a worldwide workforce of around 80,600.
As a worldwide leading technology partner to the automotive industry,
the Automotive Systems Division of Continental AG integrates extensive
know-how and uncompromising quality in the fields of driving safety,
powertrain and comfort. In 2005 the Division achieved sales of approx. EUR
5.2 billion with a workforce of more than 24,000. Continental Automotive
Systems develops and produces electronic and hydraulic brake, stability and
chassis control systems, electronic air suspension systems, sensors, engine
management and transmission control systems, hybrid drives, cooling fan
modules as well as body and security electronics.
Corporate Image and Video Library: http://www.conti-online.com
SOURCE Continental AG
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CONTACT:
Dr. Heimo Prokop, Director Corporate
Communications, +49 511 938-1485, Fax -1055, prkonzern@conti.de ,
Hannes Boekhoff, +49 511 938-1278, Fax -1055, prkonzern@conti.de
, both of Continental AG
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