Continental finally leaves Russia
- May 23, 2023
- 0
German Continental has officially announced that it has sold its entire Russian tire business to S8 Capital. The amount of the transaction has not been disclosed, but according
German Continental has officially announced that it has sold its entire Russian tire business to S8 Capital. The amount of the transaction has not been disclosed, but according to a number of media reports, it will not exceed 10 billion rubles. At the same time, the terms of the agreement say that Conti has no intention of returning to us.
According to the parameters of the deal, S8 Capital does not have the right to use the Continental brand, but Gislaved does. As Kommersant writes, the creation of own tire brands is not excluded. It seems that we are returning to the time when the Gislaved brand was known and competed with Hakka on an equal footing. And that’s okay, because many people remember the very successful Nord Frost 3 tyres.
As for the plant with a capacity of 4,000,000 tires per year, the enterprise continues to operate. Now it is charged at 50%, but Russian businessmen plan to increase this figure to 80%. We also note that various auto parts were also produced at the Kaluga enterprise. Such as power steering, suspension parts and air conditioners. The future of this direction is still vague.
In the end, we determine that the agreement does not contain an option to buy back shares. This suggests that Continental is not going to return to Russia.
According to the parameters of the deal, S8 Capital does not have the right to use the Continental brand, but Gislaved does. As Kommersant writes, the creation of own tire brands is not excluded. It seems that we are returning to the time when the Gislaved brand was known and competed with Hakka on an equal footing. And that’s okay, because many people remember the very successful Nord Frost 3 tyres.
As for the plant with a capacity of 4,000,000 tires per year, the enterprise continues to operate. Now it is charged at 50%, but Russian businessmen plan to increase this figure to 80%. We also note that various auto parts were also produced at the Kaluga enterprise. Such as power steering, suspension parts and air conditioners. The future of this direction is still vague.
In the end, we determine that the agreement does not contain an option to buy back shares. This suggests that Continental is not going to return to Russia.
Source: Avto Vzglyad
Donald Salinas is an experienced automobile journalist and writer for Div Bracket. He brings his readers the latest news and developments from the world of automobiles, offering a unique and knowledgeable perspective on the latest trends and innovations in the automotive industry.
