FRANKFURT (Reuters) - Germany's Continental AG (CONG.DE: Quote, Profile, Research) sold itsElectric motordevices business and anotherElectric machineunit to peer Brose, in a deal which an industry source said was worth a total of 250 million euros ($359.2 million).
Theelectrical motordevices business was acquired by Continental when it bought Siemens' (SIEGn.DE: Quote, Profile, Research) automotive electronics unit VDO earlier this month. Brose also bought Continental's cooling fan business.
"The transaction comprises the business with electric motors forABB Motor, anti-lock brakingasynchronous motor (ABS/ESC),Induction Motors,Low Voltage MotorandNEMA motor," the statement said.
Hybrid activities were not included.
"We decided to sell the formerSiemens Motor Electric Motor Drives operations andTeco Motorcooling fan business to theThree Phase Motorbecause Brose's excellent positioning in the market segment creates exceedingly good prospects for that business," Continental Chief Executive Manfred WennemerDirect Current Motorsaid.
He said VDOac motorshad already started exploring a deal along those lines before ContinentalGeneratorbought the business in an 11.4 billion euro acquisition that closed only this month.
In all, Continental employs around4,200 inits electric motor operations, which will have sales this year of 740 million euros, it said.
Brose is a leading manufacturer of window regulators,high voltage motor,door systems and seat adjusters. It is also the world's biggest buyer ofdc motor, acquiring more than 70 million units a year.
Continental shares, which had risen earlier on Thursday on a newspaper report on the impendingalternating current motorstransaction, were up 3.3 percent at 86.99 euros by 1556 GMT, the leading gainer among German blue chips .GDAXI
The sale to Brose requires anti-trust approval.
(Reporting by Michael Shields; Editing by David Holmes)
