Knorr-Bremse is backing down at Hella

The Munich-based brake company Knorr-Bremse is dropping out of the race for the headlight specialist Hella. The board of directors had come to the conclusion that the possibilities, the key technologies and products of the automotive supplier from Lippstadt could not be transferred so easily to its own portfolio in rail and truck technology that the takeover would ultimately pay off, explained Knorr-Bremse. Only a week ago, the family company officially threw its hat into the ring. Only then was it confirmed that the Hella majority owners, the Hueck and Röpke families, were looking for a buyer for their 60 percent stake, worth a good four billion euros. Knorr-Bremse's withdrawal depressed Hella shares in Lang & Schwarz trading by 2.3 percent. According to insiders, the French competitors Faurecia and Plastic Omnium are also interested in the stake in Hella. Financial investors should also look at Hella. The investment bank Rothschild, which is tasked with the search for a buyer, wants to narrow the field of bidders soon, according to financial circles. "We are always considering opportunities for value-increasing transactions with leading international companies. That is why we looked at Hella", CEO Jan Mrosik explained the move in retrospect. "However, the opportunities for a possible transfer of competencies, especially in the commercial vehicle sector, have not been sufficiently confirmed for us." Knorr-Bremse was primarily focused on Hella's business with sensors. They are a prerequisite for autonomous driving, which the Munich-based company also see as a future opportunity for trucks. Knorr is currently purchasing the technology for this from Continental. Knorr-Bremse shares had plummeted and fell to an annual low of a good 88 euros after the takeover plans became known. The entry would have made a mandatory offer to all Hella shareholders. The company is worth more than 6.4 billion euros on the stock exchange.