Citi resumes Schaffler at 'buy' on Vitesco takeover deal

Schaeffler AG

29/05/2024 08:44

** Citi resumes Schaeffler  SHA_p.DE  at "buy", expecting
the German automotive supplier to strengthen its position in the
EV sector after the Vitesco Technologies Group  VTSCn.DE 
acquisition
    ** Schaffler agreed to buy Vitesco to boost its EV supply
chain presence
    ** Citi expects the deal to bridge the BEV tech-gap and make
the firm more resilient to EV transition volatility, also
pointing to the new executive team's "balanced approach"
    ** It sees the integration of Vitesco's auto electronics
expertise and Schaeffler's mechanical competencies as a value
creation opportunity 
    ** The broker also ups Vitesco to "buy" based on
Schaeffler's valuation and the exchange ratio of 11.4 shares of
Schaeffler for 1 share of Vitesco
    

 (Eva Orsolya Papp)
 ((evaorsolya.papp@thomsonreuters.com))