SCHAEFFLER COMPLETES MERGER WITH VITESCO AND POSITIONS ITSELF AS A LEADER IN MOTION TECHNOLOGY

02 November, 2024Schaeffler AG has announced the completion of its merger with Vitesco Technologies Group AG, almost a year after the initial announcement. The transaction was completed on October 1, 2024, when the merger was registered in Schaeffler's commercial register, consolidating a unified business structure and the conversion of Schaeffler's preferred shares into ordinary shares with voting rights. This step marks the beginning of a new phase for Schaeffler as it seeks to strengthen its global presence in the motion technology sector, with a projected turnover of EUR 25 billion.

Market consolidation and new corporate model

The merger of the two companies was praised by Klaus Rosenfeld, CEO of Schaeffler AG, who noted that the transaction was executed in a challenging context and in less than a year, evidencing both the technological and cultural affinity between Schaeffler and Vitesco. ‘Together we will create a leading motion technology company,’ said Rosenfeld.

Georg F. W. Schaeffler, Chairman of the Supervisory Board of Schaeffler AG, also expressed his confidence that the merger will drive the company's profitable growth in the long term. In turn, the Schaeffler family reaffirmed its commitment as a core shareholder by welcoming the employees of Vitesco.

Financial synergies and strengthened global structure

The merger is expected to generate revenue and cost synergies with a profit impact of €600 million per year. These synergies are expected to be fully operational by 2029, resulting from the integration of operational processes and the consolidation of the legal structures of both companies in strategic markets, including Europe, China, Mexico, Korea and India.

The resulting Schaeffler Group will be structured into four specialised business divisions: E-Mobility, Powertrain & Chassis, Vehicle Lifetime Solutions and Bearings & Industrial Solutions. Each will have market leadership in its respective markets, operating in the four key regions (Europe, Americas, Greater China and Asia/Pacific). The company will retain its headquarters in Herzogenaurach, Germany, and will operate under the ‘Schaeffler’ brand.

Outlook and market communication

Following the merger, the Schaeffler Group, with 120,000 employees and 100 production sites in more than 250 locations, is looking to expand its offering of integrated solutions to meet diversified demand. With the transition to a single ordinary share with voting rights, Schaeffler will be listed on the Frankfurt Stock Exchange as of October 2, 2024, offering greater cohesion and transparency to its shareholders.

From now on, Schaeffler will share its financial results as a combined company. The annual financial data for 2024 and projections for 2025 will be presented on March 5, 2025, and in the second half of the year, Schaeffler's financial results will be published in the second half of the year.