Schaeffler Group completes the merger of Weipai Technology

Herzogenaurach | October 2, 2024 | On October 1, 2024, Schaeffler Group successfully completed the merger of Weipai Technology Group. The merger will be registered for business on the same day, marking the official effectiveness of the merger between the two parties. At the same time, all non voting ordinary shares of Schaeffler have been converted into fully voting ordinary shares. Thus, Schaeffler has successfully completed the merger transaction with Weipai Technology as planned in the fourth quarter of 2024.

Klaus Rosenfeld, CEO of Schaeffler Group, said, "With the completion of the merger with Weipai Technology, Schaeffler has opened a new chapter in the company's development. Despite the challenging external environment, we successfully completed this complex transaction as planned in less than a year, indicating that the two companies are highly compatible in terms of technology and culture. We look forward to continuing to collaborate in the future and jointly building a leading technology company focused on driving technology

Georg F., family shareholder and chairman of the supervisory board of Schaeffler Group W. Schaeffler said, "After the integration of Schaeffler and Weipai Technology, it will become even stronger. The merger of the two sides has laid the foundation for the continued profitable growth of the Schaeffler Group in the future. As a long-term important shareholder of the Schaeffler Group, the Schaeffler family will continue to provide strong support for the development of the Schaeffler Group. On behalf of my mother, Ms. Maria Elisabeth Schaeffler Tuman, I warmly welcome the excellent employees of Weipai Technology to join the Schaeffler Group

Successfully completed merger and equity conversion

According to the exchange ratio specified in the merger agreement, the original shareholders of Weipai Technology will receive 11.4 newly issued Schaeffler ordinary shares for every 1 Weipai Technology share they hold, and will have full voting rights. As part of the Schaeffler equity class conversion, Schaeffler's previously issued non voting common stock will be converted into fully voting common stock in a 1:1 ratio. In the future, all shareholders of Schaeffler will hold ordinary shares with full voting rights. Schaeffler's new shares with full voting rights will be listed and traded on the Frankfurt Stock Exchange on October 2, 2024.

Future Development Strategy and Market Positioning

Based on the operational status of the two companies in 2023, the combined company's annual sales will be approximately 25 billion euros, with around 120000 employees and over 250 branches and 100 production facilities worldwide.

According to the new organizational structure, Schaeffler Group will establish four major business groups in the future, which will be in a leading position in the corresponding fields. The four major business groups are: electric drive business group, power system and chassis business group, vehicle full cycle service business group, and industrial business group. In addition, Schaeffler Group will continue to maintain its previous four regional settings, namely Europe, America, China, and Asia Pacific.

After the merger, Schaeffler Group has a strong balance sheet, forming a huge scale effect, and a rich product portfolio covering eight major product lines, which can provide comprehensive solutions to a wide range of customer needs.

As initially expected, the merger of Schaeffler and Wepai Technology will bring synergies in sales and costs, with an expected annual EBIT of approximately 600 million euros. The synergy effect will gradually be realized, and it is expected to achieve full synergy potential by 2029.

Entering the integration implementation phase

With the completion of the merger, the integration work of both parties officially began on October 1st (Day One). In the past few months, the integration teams of the two companies have made sufficient preparations for this.

In addition to achieving synergies in sales and costs, integration will also include merging processes and IT systems, as well as establishing new sales and service models for cross business group customers. In addition, it also includes the integration, streamlining, and strengthening of existing legal entities in the countries where Schaeffler and Weipai Technology operated as their respective legal entities. Apart from Europe, these countries include China, Mexico, South Korea, and India.

In the future, Schaeffler Group will adopt a unified corporate brand name "Schaeffler" with green as the brand color, adhering to the corporate philosophy of "We pioneer motion (innovation driven, leading the future)". The product brands that exist alongside the Schaeffler corporate brand will gradually be integrated into the corporate brand.

After the merger, the registered address and headquarters of Schaeffler Group are still located in Herzogenaurach.

After announcing the first three quarters' performance on November 5, 2024, Schaeffler will communicate with the capital market as the merged company. Schaeffler will announce its 2024 financial report and expected targets for 2025 at its annual press conference on March 5, 2025. In addition, Schaeffler plans to hold a "Capital Markets Day" in the second half of 2025 to introduce the development strategy of the merged company to the capital market and the public.

Transferred from Schaeffler