In their ongoing pursuit to win over Vitesco shareholders, Schaeffler is throwing in the towel and bumping up their offer price. The automotive and industrial powerhouse is now prepared to cough up a cool 94 euros per share for the drive specialist, according to a joint announcement made Monday in Regensburg and Herzogenaurach. Previously, the offer stood at a mere 91 euros per share.
Despite their initial hesitance to modify the offer, CEO Klaus Rosenfeld of Schaeffler admits that the higher bid is necessary due to mounting pressure from major Vitesco investors and the company's own CEO, Andreas Wolf, who deemed the original offer as inadequate, particularly in a long-term perspective.
Schaeffler's affluent family, the industrialists, already boasts ownership of almost half of Vitesco through its affiliated enterprises, with an additional 9% stake secured through financial instruments. The increased takeover offer comes as an attempt to appease the remaining shareholders.
Both companies announced the conclusion of a merger agreement, with the future enterprise to be named Schaeffler AG and headquartered in Herzogenaurach, Franconia. Thomas Stierle, a Vitesco executive, will seal his spot on the Executive Board, overseeing the Electromobility division.
The amalgamated company is anticipated to become one of the world's major players in vehicle and industrial drive systems, with a projected annual revenue of approximately 25 billion euros. Schaeffler is hopeful that the merger will yield an annual pre-tax profit effect of approximately 600 million euros, set to materialize starting 2029.
Despite Schaeffler's initial reluctance to boost the offer price, the automotive and industrial powerhouse is embracing the challenge by increasing its bid for Vitesco shareholders to 94 euros per share, drafting a response to growing concerns from major investors and Vitesco's top brass.
