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Continental, Michelin plan tyres joint venture - filing

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By Reuters
Continental, Michelin plan tyres joint venture - filing
FILE PHOTO: Bibendum, the Michelin Man mascot, is seen ahead of a news conference to present the Michelin Group company's 2018 annual results in Paris, France, February 11, 2019. REUTERS/Philippe Wojazer/File Photo   -   Copyright  Philippe Wojazer(Reuters)

FRANKFURT (Reuters) – German automotive supplier Continental <CONG.DE> and France’s Michelin <MICP.PA> plan to set up a tyre-making joint venture, according to a list of mergers under review published by the German antitrust authority.

The venture, in which French farming software firm SMAG is also listed as a partner, would be based in Singapore, according to the Aug. 29 filing published on the Federal Cartel Office’s website.

Continental declined to comment. The disclosure comes as the company, based in Hanover, restructures in the face of what CEO Elmar Degenhardt this week called a global industry crisis that could only be overcome with state aid.

The German company has said it may shut plants as part of its restructuring, with Degenhardt saying he hoped to achieve clarity on how many would be affected by the end of this year.

The restructuring involves splitting Continental into three divisions. It has said it could spin-off its Powertrain unit rather than listing it. The other units will be Continental Rubber and Continental Automotive.

(Reporting by Matthias Inverardi and Jan Schwartz; Writing by Douglas Busvine; Editing by Edmund Blair)