United Kingdom, 2007-Jul-25
Siemens AG is signing an agreement with Continental AG, Hanover, Germany, to sell its entire stake in Siemens VDO Automotive AG (SV). The price is €11.4 billion. The closing of the transaction is subject to approval by the responsible antitrust authorities and other closing conditions and is expected in the current calendar year. Peter Löscher, President and CEO of Siemens AG, said: "We have reached an outstanding result. We have carefully evaluated all options for SV and chose the best perspectives for the employees, customers, and our investors." Preparations for the planned IPO of SV will be terminated.
The sale of SV supports the goals set in the company’s Fitfor 2010 program. These goals include a focused further development of the business portfolio in the three application fields of Energy and Environmental Care, Automation and Control/Industrial and Public Infrastructures, and Healthcare. "We have already made major investments in these fields in the recent past," commented Löscher. "As we pursue this course, we must be even more oriented to growth and margins, and keep an eye on the capital-intensity of our businesses. We will make Siemens more focused, less complex, and faster."
The predecessor of SV, Siemens Automotive Systems (AT), was established around 20 years ago. The business developed rapidly and marked a major milestone when it merged with Mannesmann VDO in 2001. In fiscal 2006, SV had sales of roughly €10 billion and employed some 53,000 people at around 130 locations worldwide, including about 19,600 in Germany. Wolfgang Dehen, President of SV, said: "All employees can be proud of what we as a team have achieved with SV so far. The new product portfolio, clearly focused on the growth field of automotive electronics, will offer great possibilities for the future."
Siemens VDO Automotive AG, a Group of Siemens AG, is one of the world’s leading suppliers of electronics and mechatronics for the automotive industry. With its products, it enables individual mobility and the efficient transportation of goods by road in modern societies. As development partner of the automotive industry, the company manufactures automotive electronics and mechatronics for reducing emissions, enhancing safety and driving comfort, and keeping drivers informed and in touch with the outside world. Siemens VDO generated sales of over €10 billion in fiscal year 2006 (to September 30) and Group profit of €669 million (based on US GAAP).
The Continental Corporation is a leading automotive supplier of brake systems, chassis components, vehicle electronics, tires and technical elastomers. In 2006 the corporation realized sales of EUR14.9 billion. It has a worldwide workforce of around 87,000.
About Siemens in the UK:
Siemens was established in the United Kingdom 164 years ago. The company employs 20,314 people in the UK, including about 6,500 in the manufacturing sector. Last year’s revenues were £3.5 billion, including exports of £580 million, and it spent almost £75 million on research and development. As a leading global engineering company, Siemens provides innovative solutions to help tackle the world’s major challenges, including the shortage of natural resources, increasing environmental care, and a growing demand for healthcare, mobility and security. Siemens has offices and factories throughout the UK, with its headquarters in Bracknell, Berkshire. The company’s global headquarters is in Munich, Germany. For more information, visit www.siemens.co.uk
Notes to editors
Mr. Anne Keogh
Siemens plc
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