Schaeffler has completed its acquisition of Vitesco, the drive specialist, as of early October. Thomas Stierle from Vitesco Technologies has been appointed to lead the newly established E-Mobility division, although the merger is expected to result in job reductions due to overlapping roles.
The merger became effective following the final registration of the transaction in Schaeffler’s commercial register. This deal was initially announced at the end of 2023, when Schaeffler held nearly 80% of Vitesco’s shares.
Under the terms of the merger, Vitesco shareholders will receive new common shares in Schaeffler at a ratio of 1:11.4 for full voting rights. Schaeffler’s non-voting common shares will convert into common shares at a ratio of 1:1.
The integration process has been under preparation since the start of the year. Stierle’s leadership of the E-Mobility division comes alongside Jochen Schröder, who will take on the role of Regional CEO for Europe after previously overseeing E-Mobility at Schaeffler. The company claims that the merger will yield a “strong balance sheet, significant economies of scale, and a comprehensive product portfolio.”
Going forward, the Schaeffler Group will organize its operations into four main divisions: E-Mobility, Powertrain & Chassis, Vehicle Lifetime Solutions, and Bearings & Industrial Solutions. Additionally, it will continue to operate across four geographical regions: Europe, the Americas, Greater China, and Asia/Pacific.
Klaus Rosenfeld, CEO of Schaeffler, stated, “Despite the challenging environment, the complex transaction was successfully completed according to plan in less than a year, demonstrating that the two companies are both a technological and cultural fit.” He expressed enthusiasm about the future collaboration, aiming to establish a leading Motion Technology Company.
The merger is projected to result in annual sales and cost synergies of approximately €600 million. However, this consolidation may also lead to job losses as some roles are now redundant. Rosenfeld noted the uncertainty surrounding the exact number of job reductions, saying, “I cannot say the exact dimensions at this point in time.”