A separation of Continental’s [ETR:CON] divisions will enable the German group to move quickly to make acquisitions in a dynamic automotive market, but the likelihood of a substantial valuation uplift following a split is questionable, sector bankers said.
Last month, Continental said it was analysing how it could be “more flexible in response to the fast-changing environment” of the car industry.
This comes as the industry is increasingly shifting towards electric and hybrid electric vehicles. “The reason for the split I think is clear … to react to the disruptions in the auto sector, particularly regarding electrification,” one banker said.
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