Mutares Acquires Drum Brake System from Continental on June 18, 2025, at 08:15
In a significant move, investment firm Mutares has agreed to purchase Continental's drum brake manufacturing and R&D facility situated in Cairo Montenotte, Italy. This site, employing approximately 400 employees, will churn out hydraulic drum brake goods like the Parking Brake for Simplex Brakes (EPB-Si) and the Drum Brake (Si), generating an estimated €100 million in revenue this year.
Conti is opts for trimming expenses in its automotive supply division and focusing more on cutting-edge technology within research and development and investments. The deal. between Mutares and Continental should close in the fourth quarter following the planned IPO spin-off of Continental's automotive supply division as the new company Aumovio.
The new company, Aumovio, is keen on streamlining its operations and directing its R&D and investments towards future technologies. The IPO spin-off will take place prior to the completion of the Mutares acquisition. This strategic move by Continental is aimed at concentrating on high-margin businesses within the automotive supply sector.
To sum up, Continental plans to shed its Cairo Montenotte drum brake plant to Mutares, a move which is in line with Continental's broader strategy to hon in on core business areas like electric braking and integrated friction solutions by streamlining its operations. On the other hand, Mutares views the Cairo Montenotte plant as a solid foundation for operational growth within its automotive and mobility segment.
[1]: https://www.conti-static.com/ damage-report-conti/conti-announces-planned-ipo-spin-off-of-its-automotive-supply-division
Economic and social policy: The strategic move by Continental to sell its Cairo Montenotte drum brake plant to Mutares aligns with their focus on streamlining operations and concentrating on high-margin businesses within the automotive supply sector, which is a part of their broader economic and social policy.
Finance and business: Mutares, an investment firm, views the acquisition of Continental's Cairo Montenotte plant as a solid foundation for operational growth within its automotive and mobility segment, potentially leading to substantial revenue generation, estimated at €100 million this year, and contributing positively to their business profits.
