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Investing.com -- Continental AG (OTC:CTTAY), a German automotive manufacturing company, announced on Tuesday its plans to make its ContiTech rubber and plastics division an independent entity.
The move is likely to be followed by the sale of the division.
Following the announcement, Continental shares experienced a 3.1% rise on Tuesday morning.
The company made it clear in a statement that they consider selling the newly independent sector as the most probable strategic option. This move is part of a broader restructuring process within the company.
Continental AG's decision to separate the ContiTech division will be put into action after the spin-off of its automotive unit and the sale of its Original Equipment Solutions business.
According to the company, the ContiTech division is expected to gain its independence by 2026.
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