Bosch and Siemens Make Better Offer for Atecs
6 April 2000
Bosch and Siemens Make Better Offer for Atecs
Convincing industrial concept: Joint growth strategy for leading engineering
and technology company - Increase in Atecs capital - Merger of Siemens
Automotive Systems and VDO under Siemens industrial management
MUNICH, Germany, April 5 Robert Bosch GmbH, Stuttgart, and
Siemens AG, Munich/Berlin, made an offer today to the Supervisory and Managing
Boards of Mannesmann AG to acquire Atecs Mannesmann AG for euro 9.1 billion.
Bosch and Siemens want to continue operating the company on a parity basis as
a joint venture and further develop its business by bringing in their own
activities. The new company will be one of the most important engineering and
technology enterprises on the world market.
The acquisition will be financed with current liquid assets of Bosch and
Siemens. Following their acquisition of the company, Siemens and Bosch intend
to make additional capital available to Atecs in order to finance its growth.
This move would foster long-term growth in the new company and help secure
jobs. Bosch and Siemens hope to wrap up the negotiations as quickly as
possible. The structure of the joint venture will be tailored to meet
antitrust regulations so that approval by the antitrust authorities can be
expected.
Both electronic companies are convinced that their offer is the most
satisfactory industrial solution for employees, shareholders and customers of
Atecs Mannesmann. Following the acquisition, Siemens plans to merge its
Automotive Systems Group with VDO at Atecs and assume industrial management,
reflecting the buyers' stakes, of that sector. In addition, Bosch will merge
its automation technology activities into the corresponding Atecs unit
(Rexroth).
The leading market positions of the other Atecs divisions -- Sachs, Demag
Krauss Maffei and Dematic -- would be further expanded and enhanced through
cooperation with the corresponding activities at Bosch and Siemens. Moreover,
the new joint venture would profit in the future from the know-how resources
of both parent companies.
Bosch and Siemens intend to retain Atecs' existing bodies, management
structures and its operating independence for a period of at least three
years.
Siemens and Bosch are technology leaders, have around 66,000 employees
working in research and development, and are top-ranked for patent
registrations in Germany. Both companies would reinforce their competencies
in key technologies and lay the foundation for further profitable growth. For
over 30 years, Bosch and Siemens have worked together with great success in
the field of household appliances and have achieved an outstanding position in
the world market.
Robert Bosch GmbH had sales (preliminary figures) of DM54 billion (euro
27.6 billion) in fiscal 1999 and a worldwide workforce of 195,000 employees.
The company's Production Goods Division (automation systems, packaging
machines) posted sales of DM2.1 billion (euro 1.1 billion) in the past year.
In fiscal 1999 (ended September 30), Siemens had sales of DM134.1 billion
(euro 68.7 billion) and earnings after taxes of DM3.65 billion (euro 1.87
billion). Siemens Automotive Systems Group, employing 27,000 people at over
80 locations worldwide, increased its business volume 15 percent to DM6.4
billion (euro 3.3 billion) for the year.