Continental AG, the fourth largest tyre manufacturer worldwide, on Monday said it has acquired the remaining 30 percent stake in Continental Sime Tyre Sdn. Bhd. from joint venture partner Sime Darby Bhd.
The German giant has now full control over the the venture. The venture will be renamed Continental Tyre Malaysia Sdn. Bhd.
Sime Darby is Malaysia’s leading multinational conglomerate involved in five core sectors: plantations, property, industrial, motors and energy & utilities, with a growing presence in healthcare.
Last week, Continental reiterated sales and earnings forecasts for this year as growth in sales of car components and tires propelled first-quarter profit.
Revenue will rise more than 5 percent in 2012 to exceed 32 billion euros ($42 billion), while adjusted earnings before interest and taxes as a proportion of sales will match last year’s margin, Hanover, Germany-based Continental said today in a statement.
First quarter sales were just over EUR8.3 billion, up 13% from a year earlier.
Continental AG has the largest tyre dealer network totalling over 1,200 tyre outlets providing a wide range of car care and tyre services to motorists throughout the country (Malaysia).