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Continental’s Supervisory Board has greenlit the spin-off of its Automotive sector, setting the stage for a major corporate realignment. The decision, made on March 13, 2025, awaits approval from the Annual Shareholders’ Meeting. The independent Automotive company will launch with €1.5 billion in cash and a €2.5 billion credit facility, targeting a Frankfurt Stock Exchange listing in September 2025. Post-spin-off, Continental and Automotive will adopt new dividend policies, promising higher shareholder returns. Capital Market Days in June 2025 will outline future goals for both entities.
Key Highlights
- Spin-off Details: Automotive separates with €1.5 billion cash, bolstered by a €2.5 billion credit line, ensuring financial stability.
- Leadership: Stefan E. Buchner will chair Automotive’s Supervisory Board, with Philipp von Hirschheydt as CEO.
- Timeline: Capital Market Days set for June 24 (Automotive) and June 25 (Continental) in Frankfurt; listing planned for September 2025.
- Share Allocation: Shareholders get one Automotive share for every two Continental shares held.
- Dividend Shift: Continental targets 40-60% net income payout; Automotive aims for 10-30%, reflecting competitive norms.
The Supervisory Board’s approval marks a pivotal step in Continental’s strategy to enhance agility and value creation. The spin-off, pending shareholder consent, positions Automotive as a standalone entity with robust funding. Wolfgang Reitzle, chairman of Continental’s Supervisory Board, emphasized the move’s significance: “Focused companies are significantly more agile and can create more value, especially in a challenging environment.” Meanwhile, CEO Nikolai Setzer highlighted the advanced preparations: “The spin-off can go ahead as planned,” underscoring benefits for all sectors—Tires, ContiTech, and Automotive.
The June Capital Market Days in Frankfurt will detail short- and mid-term targets, offering clarity to investors. Automotive’s listing in September 2025 will follow a 2:1 share allocation, ensuring a smooth transition for shareholders. Post-spin-off, Continental’s dividend policy will rise to 40-60% of net income, up from 20-40%, while Automotive sets a 10-30% range, contingent on earnings.
Leadership continuity is secured with Stefan E. Buchner and Philipp von Hirschheydt steering Automotive. Von Hirschheydt expressed optimism: “Our earnings performance in 2024 proves that we are on the right track and are ready to develop further as an independent listed company.” This strategic split aims to sharpen focus, boost market proximity, and unlock growth potential across Continental’s portfolio.
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