German auto supplier Continental AG approved a takeover offer by smaller rival Schaeffler Group early on August 21 after weeks of talks and a hike in Schaeffler's offer. Bearings manufacturer Schaeffler agreed to increase its bid to 75 euros ($110.61) per share from 70.12 euros, the companies said, and Continental chief executive Manfred Wennemer, who long opposed the deal, is to step down by August 31.
Schaeffler would maintain a minority share of tyremaker Continental for four years under the deal.
Continental said the overall package was "acceptable." The agreement, which could be cancelled by spring 2014 at the earliest, also clarified the future set-up of the merged companies and included stipulations to protect the interests of Continental's employees and shareholders, the company said.
Scheffler agreed not to split up the company or demand any sales or substantial structural changes.
The Continental board last month formally rejected Schaeffler's earlier 70.12-euro-a-share bid as too low.
A slump in the car industry, combined with an 11-billion-euro acquisition last year, had helped to drive down Continental's shares, leaving the group exposed to takeover.
Schaeffler had already secured the rights to about 36 percent of Continental's shares.
The companies would have a combined turnover of about $33 billion.