Deals
Continental Sticks to Powertrain IPO Plan Amid Profit Slump
- Engine-parts unit could start trading separately in 2020
- Lower auto production caused 17% drop in first-quarter profit
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Continental AG is moving ahead with plans to carve out its powertrain division while postponing a final decision, as the German auto-parts maker adapts to the disruptive and costly shift to self-driving, electric cars.
Preparations for a partial initial public offering of the unit, which makes components for combustion and electric-powered vehicles, will be completed toward the end of the second half, the Hanover-based company said Friday in a statement. The unit is valued at as much as 5 billion euros ($5.6 billion).