INA takeover of FAG completed
Herzogenaurach, Germany -- Jan. 11, 2002 -- The hostile takeover of FAG Kugelfischer Georg Schfer AG of Schweinfur...
Herzogenaurach, Germany — Jan. 11, 2002 — The hostile takeover of FAG Kugelfischer Georg Schfer AG of Schweinfurt, Germany, by the INA Group of Herzogenaurach, Germany, has been completed after approval by the U.S. Federal Trade Commission and European cartel authorities, including the German Takeover Code.
The takeover creates the world’s second-largest bearing manufacturing company, behind SKF of Gthenberg, Sweden.
A provision of the FTC approval is that INA divest FAG’s cartridge ball screw support business in its entirety. It will be sold to SKF. This is because the acquisition would have given INA a monopoly in the CBSSB market worldwide.
The FTC also determined that FAG’s relationship with NTN Corporation of Osaka, Japan, must be watched for possible abuse. Although a global strategic alliance of FAG and NTN, announced in March 2001, had not yet seen any joint activities develop, the FTC is concerned about the possibility of a future global three-firm alliance.
INA said it welcomes the FAG alliance with NTN and in principal is prepared to continue the cooperation.
Dr. Juergen M. Geissinger, CEO of INA-Holding Schaeffler KG, also became the CEO of FAG on Jan. 1, 2002. Uwe Loos, the former CEO of FAG Kugelfischer Georg Schaefer AG, is leaving the company.
INA says that FAG will remain the management company for FAG activities with headquarters in Schweinfurt. It also will guarantee all FAG locations will remain until 2004.
The total value of the transaction is approximately US$650 million. FAG had 61.2 million shares outstanding.
INA Canada Inc,. as part of the INA Group, provides Canadian industry with bearing products for rotary and linear motion as well as specialized precision products for the automotive industry. Established in 1967, the Canadian headquarters are located in Oakville, ON, just west of Toronto.
FAG and NTN, both of which have offices in the Toronto area, had been planning a joint venture in Canada for the sales and marketing of industrial roller bearings, to serve as a test bed for future cooperation initiatives throughout North America.
The INA Group is a privately held company. INA ownership is split between two people, both descendants of one of the founding brothers. Maria-Elizabeth Schaeffler, widow of co-founder Georg Schaeffler, and her son George, are the only shareholders.
INA tendered the surprise bid for FAG on Sept. 9, 2001, telling FAG management about it only the day before. Initially, FAG actively rejected the offer and pursued other avenues to prevent the takeover, including expanding its relationship with NTN.
The takeover strategy followed an announcement in August 2001 of a joint venture between NSK Ltd. of Tokyo, Japan, and The Timken Company of Canton, Ohio, to service Toyota Motor Company’s worldwide manufacturing operations.
Bill Roebuck, Editor, mro-esource.com