Billion dollar deal: Continental sells ContiTech to investor

The implementation is subject to official approval and could take place by the end of 2026. According to Continental, shareholders will receive a special dividend.

According to the announcement, Continental expects the sale to generate a cash inflow of around 3.1 billion euros. However, the final financial effects still depend on the factors common in such processes. Continental intends to use the proceeds to further reduce the group’s financial debt and is expected to do so around 2.5 billion euros to be used for shareholder participation. This should be done either through a special dividend or through a combination of share buybacks and a special dividend.

Just tires

With the sale of ContiTech, Continental becomes a pure tire manufacturer. ContiTech provides Rubber and plastic products for industrial applications. The division employs more than 1,000 people worldwide 20,000 employeesof which round 7,700 in Germany. Continental recently announced that it would cut 3,000 jobs in the division. This should reduce costs by around 150 million euros per year from 2028 onwards.

According to Saturday’s announcement, Continental is examining the impact of the transaction on the forecast for the current financial year and intends to adjust it at a later date. However, the outlook for the Tires division remains unaffected.