HANOVER, Germany (July 25) — Continental A.G. has won the bidding for Siemens A.G.'s VDO Automotive unit, offering $15.7 billion for the automotive electronics and mechatronics business.
Combining the Schwalbach, Germany-based Siemens VDO Automotive A.G. with Conti's automotive systems business — already Conti's largest single business unit — will create a global automotive supplier with more than $34 billion in sales and nearly 140,000 employees.
The deal is contingent on the approval of the antitrust authorities, both Conti and Siemens said. Conti Chairman Manfred Wennemer said he anticipates the deal to close before the end of the year.
Before announcement, Siemens had been planning to spin off VDO. That decision spawned offers by Conti and other large automotive suppliers.
Siemens VDO describes itself as a development partner with the automotive industry, making products related to the drive train, engine management electronics and fuel injection that improve engine performance and reduce emissions.