Continental says nearing sale of ContiTech unit to Lone Star for $4.6 billion (updated)
UPDATE 2-Continental says nearing sale of ContiTech unit to Lone Star for $4.6 billion Recasts with Continental statement
MUNICH/BERLIN, July 3 (Reuters) - Continental CONG.DE is in the final stages of agreeing a sale of its ContiTech division to U.S. investor Lone Star, it said on Friday, adding that its leadership had approved a deal valuing the unit at €4 billion ($4.6 billion).
Continental, which said a binding agreement had not yet been reached, added that it could receive up to an additional €250 million in subsequent years if business at ContiTech is going better than expected.
Two people familiar with the matter had said earlier the companies were nearing a deal on ContiTech, which makes rubber and plastic products for industrial clients.
Continental is selling ContiTech to focus on its core tyres business. The division has been under pressure and in May cut 3,000 jobs, including 1,600 in Germany.
Lone Star had no immediate comment.
($1 = 0.8737 euros)
(Reporting by Alexander Huebner and Christina Amann;
Writing by Christoph Steitz and Linda Pasquini;
Editing by Friederike Heine, Louise Heavens and Helen Popper)