Case Summary
The German based Schaeffler Group is privately owned by Maria Elisabeth Schaeffler and her Son Georg Schaeffler. In 2007 the company was the world's second-largest manufacturer of ball bearings. In order to become the world leader in the automotive components industry, on 15 July 2008, Schaeffler launched a bid to acquire publicly-held Continental AG, the world's six-largest automotive components supplier. After fiercely opposing the bid, Continental ultimately accepted Schaeffler's offer, but compelled Schaeffler to sign an investment agreement which was largely in its favor. Schaeffler's bid was a bold move, considering the fact that it was nearly three times smaller than Continental. Also, financing the acquisition and taking over Continental's businesses during times of severe global financial and economic crises was a big challenge.
Key Issues
The student’s task is to analyze the case from the point of view of Schaeffler’s Owner Maria Elisabeth and Georg Schaeffler on January 6, 2010, after Continental’s share issue of 31 million new stocks. The reader will learn why it is useful for companies to buy others and with which strategy Schaeffler used for its takeover. Furthermore an analysis of the share price will show the student how mergers influence the company’s value on the stock exchange.
Inhaltsverzeichnis (Table of Contents)
- An uncertain future
- Schaeffler Group takes over Continental AG
- Refinancing of the Continental AG
- Continental's Capital Increase
- Schaeffler Group
- Genesis of the Schaeffler Group
- Structure of the Corporation
- Owners/Management
- Automotive Group
- Rubber Group
- Continental AG
- Genesis of the Continental AG
- Management
- Automotive Components Industry
- Industry development
- Top Competitors Schaeffler KG
- Top Competitors Continental AG
- The takeover's consequences
- Exhibit
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This bachelor thesis aims to analyze the takeover of Continental AG by the Schaeffler Group, examining the strategic decisions, industry dynamics, and consequences of this significant merger and acquisition event. The case study focuses on the actions and motivations of both companies, exploring the complexities of a large family-owned company acquiring a major public corporation.
- Strategic decision-making in mergers and acquisitions
- The dynamics of family-owned businesses versus public corporations
- Industry analysis of the automotive components sector
- Post-merger integration challenges
- Legal and regulatory aspects of hostile takeovers
Zusammenfassung der Kapitel (Chapter Summaries)
An uncertain future: This chapter introduces the overarching narrative, setting the stage for the analysis of the Schaeffler Group's acquisition of Continental AG. It highlights the potential pitfalls of post-merger integration and underscores the uncertainty surrounding Maria-Elisabeth Schaeffler's strategic vision for the combined entity. The lack of a clear integration strategy and the ambiguous statements made to Continental's supervisory board foreshadow potential challenges. The chapter concludes with a discussion of the unresolved future of both companies, leaving a sense of anticipation for the subsequent events.
Schaeffler Group takes over Continental AG: This chapter details the initial stages of the takeover, focusing on the clandestine acquisition of a significant stake in Continental AG by the Schaeffler Group. It narrates the meeting between the two companies, highlighting Continental AG's strong rejection of the unsolicited bid and Schaeffler's swift defense of its actions. The resulting investigation by Germany's financial watchdog introduces the legal and regulatory context of the takeover, emphasizing the complexity and potential controversies surrounding the acquisition. The chapter highlights the stark contrast in corporate structures and approaches between the family-owned Schaeffler Group and the publicly traded Continental AG.
Schaeffler Group: This chapter provides a detailed overview of the Schaeffler Group, tracing its genesis and examining its organizational structure. It delves into the roles of its owners and management, exploring the corporate culture and strategic decision-making processes within the family-owned conglomerate. The analysis of the group's structure, including its Automotive and Rubber groups, offers crucial context to understanding its motivations and capabilities in executing a large-scale takeover. The chapter also sets the stage to understand the contrast with the organization of Continental AG.
Continental AG: This chapter presents a parallel analysis to the preceding one, providing a comprehensive examination of Continental AG. It traces the company's history, elucidating its development within the automotive components industry. The chapter also analyzes Continental AG's management structure and strategic direction, offering crucial insight into its strengths, weaknesses, and vulnerabilities in the face of the hostile takeover bid from the Schaeffler Group. The contrast in structure and operational style between the two entities is highlighted to provide a deeper understanding of the challenges associated with the acquisition.
Automotive Components Industry: This chapter focuses on the broader industrial landscape in which the takeover occurred. By analyzing industry trends and the competitive dynamics within the automotive components sector, the chapter provides context for understanding the strategic motivations behind the Schaeffler Group's acquisition of Continental AG. The identification of top competitors for both companies further highlights the competitive landscape and the potential implications of the merger. This offers a crucial economic context to the narrative.
Schlüsselwörter (Keywords)
Mergers and Acquisitions (M&A), Schaeffler Group, Continental AG, Family-owned business, Public company, Hostile takeover, Automotive components industry, Strategic management, Post-merger integration, Corporate governance, German business.
Frequently Asked Questions: Analysis of Schaeffler Group's Takeover of Continental AG
What is the main topic of this document?
This document provides a comprehensive analysis of the Schaeffler Group's takeover of Continental AG. It examines the strategic decisions, industry dynamics, and consequences of this significant merger and acquisition, focusing on the actions and motivations of both companies and the complexities of a family-owned company acquiring a public corporation.
What are the key themes explored in this analysis?
The analysis explores several key themes, including strategic decision-making in mergers and acquisitions, the dynamics of family-owned businesses versus public corporations, industry analysis of the automotive components sector, post-merger integration challenges, and the legal and regulatory aspects of hostile takeovers.
What is included in the Table of Contents?
The table of contents covers an uncertain future, the Schaeffler Group's takeover of Continental AG (including refinancing and capital increase), details on both the Schaeffler Group (genesis, structure, owners/management, automotive and rubber groups) and Continental AG (genesis and management), the automotive components industry (industry development and top competitors), the takeover's consequences, and exhibits.
What are the chapter summaries?
The summaries detail the introduction of the takeover narrative, the initial stages of the acquisition, a detailed overview of both the Schaeffler and Continental groups, an industry analysis of the automotive components sector, and the overall consequences of the merger.
What are the objectives of this analysis?
The objective is to analyze the takeover of Continental AG by the Schaeffler Group, examining the strategic decisions, industry dynamics, and consequences of this merger and acquisition event. The focus is on the actions and motivations of both companies, particularly the complexities of a large family-owned company acquiring a major public corporation.
What are the key words associated with this analysis?
Key words include Mergers and Acquisitions (M&A), Schaeffler Group, Continental AG, Family-owned business, Public company, Hostile takeover, Automotive components industry, Strategic management, Post-merger integration, Corporate governance, and German business.
What is the overall narrative of the takeover?
The narrative follows the Schaeffler Group's acquisition of Continental AG, highlighting the clandestine acquisition, Continental AG's rejection, the legal and regulatory aspects, the contrasting corporate structures, and the resulting uncertainties and challenges of the post-merger integration.
What are the key differences between Schaeffler Group and Continental AG?
The key differences lie in their ownership structures (family-owned vs. public), corporate cultures, and strategic approaches. These differences significantly impacted the takeover process and the subsequent integration challenges.
What is the significance of the automotive components industry in this analysis?
Analyzing the industry provides crucial context for understanding the strategic motivations behind the acquisition, highlighting competitive dynamics and the potential implications of the merger for the broader market.
What challenges are highlighted regarding the post-merger integration?
The analysis highlights the potential pitfalls and uncertainties surrounding the integration of the two companies, including the lack of a clear strategy and the resulting ambiguity about the future of both entities.
- Quote paper
- Harald Augeneder (Author), 2010, The Takeover Dispute between Schaeffler Group and Continental AG (Case Study), Munich, GRIN Verlag, https://www.grin.com/document/160480
