HANNOVER, Germany (Nov. 6, 2007) — Continental A.G. has completed its purchase of 51-percent control of Matador Group's tire, conveyor belt and rubber machinery operations, giving it full ownership of the Continental-Matador truck tire venture in Puchov, Slovak Republic, and controlling interest in the Matador-Omskshina joint venture in Russia.
The deal closed Nov. 2, about a month after the companies had expected it to close. The companies to date have not disclosed the value of the deal. The European Commission cleared the transaction in June.
Matador's rubber business generated sales of about $560 million in 2006, with 4,770 employees. Previously Conti owned 76 percent and Matador 24 percent of the truck tire venture.
Also, Matador Machinery's operations in Puchov are being integrated with Continental FMF and have been renamed Continental Machinery. The new company will be under JÃ¼rgen Dieterich, previously head of Conti´s FMF unit.
Continental has scheduled a press conference for Nov. 8 in Puchov, where Conti CEO Manfred Wennemer and members of the Rosina family—who control Matador—will give further details of the future of the former Matador operations.
Besides tire manufacturing in Puchov and Omsk, Russia, the assets include conveyor belt production and the machinery operations in Puchov.
Earlier, Conti stated it intends to expand passenger and light truck tire production at Matador's factory in Puchov by more than 27 percent to 7 million units a year once it closed the deal.