The global site of the UK's leading magazine for automation, motion engineering and power transmission
30 January, 2023

LinkedIn
Twitter
Twitter link

FAG fights INA`s €670m takeover bid

01 October, 2001

German bearing-maker FAG Kugelfischer is trying to fend off a takeover bid by its compatriot, INA. Privately owned INA launched its bid in early September, offering a 51% premium on the pre-bid share price in the publicly quoted FAG, valuing it at €670m (£420m).

FAG is currently in fourth place in the global bearings league (behind SKF, NSK and NTN). A merged operation could leap into the second slot, with annual sales of €6.4bn (£4bn) and 52,000 employees.

There is reportedly little overlap between INA and FAG. INA focuses on tailor-made bearings particularly for the automotive industry, while a third of FAG`s sales are standard products. INA concentrates on the German market, while FAG has been building its global business and has been co-operating with Japan`s NTN.

One of the attractions of the deal from INA`s point of view is that it would decrease its reliance on the German automotive sector. In a letter trying to persuade his shareholders to reject the INA approach, FAG chief executive Dr Uwe Loos described his rival as "a family-owned company with a primarily regional focus, and a one-dimensional emphasis on the automotive industry".

He said that the INA offer "lacks a clear strategy" and that the merger "would have a negative effect for shareholders, employees and customers of FAG".

But as Drives & Controls went to press, INA was reported to have secured almost 20% of FAG`s shares and it appeared likely that it would win the battle although it was possible that FAG`s Japanese partner NTN or America`s Timken might step in as a "white knight".




Magazine
  • To view a digital copy of the latest issue of Drives & Controls, click here.

    To visit the digital library of past issues, click here

    To subscribe to the magazine, click here

     

Poll

"Do you think that robots create or destroy jobs?"

Newsletter
Newsletter

Events

Most Read Articles