Continental close to selling Contitech division to Lone Star for four billion euros

Valuation and additional component

The impetus for the price movement came from the group's announcement "dass eine Vertragsunterzeichnung mit dem Finanzinvestor Lonestar vor dem Abschluss steht". Continental put the planned enterprise valuation at four billion euros. "Der Finanzinvestor Lonestar will Contitech für eine Bewertung von 4 Milliarden Euro übernehmen", the company announced. In addition to the purchase price, there could be an earnings-related component according to the group: "Ergänzend zum Kaufpreis könnte es noch eine erfolgsabhängige Komponente in Höhe von bis zu 250 Millionen Euro in den Folgejahren für Conti geben."

According to the company, the Continental Executive Board and Supervisory Board have already approved the conclusion of a purchase agreement for Contitech on the basis of an enterprise valuation of four billion euros. At the same time, Continental pointed out that no binding agreement has yet been concluded. In addition, in the coming years, "mögliche leistungsbezogene Komponenten von bis zu 250 Millionen Euro" could be part of the deal.

Strategic restructuring into a tire manufacturer

With the sale of Contitech, Continental would divest another strategic business area after the already completed spin-off of the automotive supplier business Aumovio. According to the company's plans, only the classic tire business is to remain in the group in the future: "Nur das traditionelle Reifengeschäft soll im Konzern verbleiben." Strategically, it was already clear according to the group: "dass Contitech nach der Abspaltung des Automobil-Zuliefergeschäfts Aumovio der nächste Bereich ist, dessen Veräußerung den Mutterkonzern künftig zu einem reinen Reifenhersteller machen soll."

Continental had already announced the spin-off of the plastics and rubber division Contitech in April of last year. "Ein Verkauf wurde damals bereits als wahrscheinlichste Option bezeichnet", it said in the environment at that time. The development was presented in Hannover on Friday. After years of structural changes, the company is fundamentally reorganizing its profile.

Analyst voices and industry environment

Analysts were predominantly positive shortly before the planned signing of the contract. Deutsche Bank AG rated Continental "Buy" on 02.07.26: "02.07.26 | Continental Buy | Deutsche Bank AG". On 01.07.26, Jefferies & Company Inc. had already rated the share "Buy" ("01.07.26 | Continental Buy | Jefferies & Company Inc."). Bernstein Research took a more cautious view on the same day with a "Market-Perform" rating ("01.07.26 | Continental Market-Perform | Bernstein Research").

Against the backdrop of weak industry development, the Continental stock stands out positively. The European sector index Stoxx Europe 600 Automobiles & Parts has lost significantly this year according to the underlying data: "während der europäische Branchenindex Stoxx Europe 600 Automobiles & Parts in diesem Jahr wegen der Probleme vieler Autobauer mehr als 15 Prozent eingebüßt hat." The business performance of many automakers is thus weighing on the industry as a whole – while Continental is driving forward a clear restructuring of its portfolio with the planned Contitech transaction.

Continental described itself in the announcement as a tire manufacturer and announced that the sales process "nun vorankommt" according to the company. The signing of the contract with Lone Star Funds is close to completion according to Continental. At the same time, Continental emphasized that no binding agreement has yet been concluded.

Overall, it is becoming apparent that Continental is transforming itself from a conglomerate into a focused tire manufacturer. After the spin-off of Aumovio and the now pending sale of the Contitech division, only the core business around tires remains in the parent group – provided that the negotiations with Lone Star Funds are successfully concluded.