Continental AG to Sell ContiTech Sector for 4 Billion Euros

Continental AG announced the sale of its ContiTech group sector to Lone Star Funds, with the transaction valued at 4 billion euros. The agreement includes potential additional performance-based payments of up to 250 million euros. Expected to conclude by the end of 2026, the sale requires regulatory and antitrust approvals.

This move is part of Continental's strategic shift to concentrate on its core Tires business. Estimated proceeds from the sale are around 3.1 billion euros. The company plans to use this influx to reduce financial debt and return approximately 2.5 billion euros to shareholders through dividends or share buybacks.

ContiTech will be considered a discontinued operation starting with Continental's half-year report. Although the company will reassess its fiscal outlook post-transaction, the Tires business forecast remains unchanged.