Bavarian developer and manufacturer of powertrain technologies for sustainable mobility Vitesco has seen a 20.24 percent increase in its share price today following reports that the company’s largest shareholder, Schaeffler is offering to acquire the company at a valuation of €3.64 billion.
The company is offering other shareholders €91 per share, a figure up 20 percent from last week’s closing bell.
According to Reuters, the intention to wholly own Vitesco was not announced by Schaeffler prior to the tender offered due to an overlap in the two companies’s boards, but the deal was expected to be a friendly merger.
Manufacturing EV components of their own, amongst others, Schaeffler Chief Executive llaus Rosenfeld told Reuters earlier today that the company would not need to raise any additional capital to fund the buyout, adding the deal would be beneficial for Schaeffler’s debt ratio.
In a statement issued by Schaeffler, the company cites that the deal could lead to "600 million euros revenue and cost synergy potential per annum with full run-rate to be achieved in 2029".
According to the Schaeffler Group, it generated sales of €15.8 billion in 2022, counts approximately 84,000 employees, and is one of the world’s largest family-owned companies. With more than 1,250 patent applications in 2022, Schaeffler is Germany’s fourth most innovative company according to the DPMA (German Patent and Trademark Office).