INA and FAG to Formally Merge in 2006
Resource from: ebearing Likes:2976
Jan 18,2005
INA Schaeffler KG and FAG Kugelfischer AG & Co. oHG (Germany, with LuK, divisions of Schaeffler Group KG, Germany) will formally merge in 2006, ending more than four years operating as separate-but-related bearing companies within Schaeffler Group.
INA acquired FAG in late 2001 after a contentious hostile takeover bid that began in September 2001.
• eBearing's timeline and coverage of the takeover
The formal merger also ends a number of autonomy concessions FAG negotiated as part of that takeover agreement. For example, INA agreed FAG would remain a separate division, with headquarters in Schweinfurt, and its management contracts in place. At the time, those arrangements prompted several German business analysts to charge the autonomy was artificial and unenforceable, simply FAG management trying to save face after decisively losing a short-lived takeover battle.
In 2001, a FAG press release outlined some of the autonomy agreements, including:
FAG headquarters will remain in Schweinfurt
FAG will be an independently staffed division of INA
FAG management board will keep their jobs
INA will honor FAG management's employment contracts
FAG's corporate identity and branding will remain intact
INA will not sell off or close FAG facilities not already planned
Now, however, the company said INA's management team and FAG Kugelfischer AG's board have agreed to legally bring the two companies together.
The new merged organization will be known as Schaeffler KG, a division of Schaeffler Group KG.
Merging and forming Schaeffler KG will take several steps.
On December 31, 2004, INA Schaeffler KG acquired FAG Kugelfischer AG & Co. oHG, including the operative German FAG business.
During 2005, the two companies will merge by a process known as accrual, simultaneously changing the company's legal name to Schaeffler KG.
All existing brands -- FAG, INA, and LuK -- will continue to exist in the marketplace. Also, the arrangement calls for Schweinfurt to remain as headquarters for Schaeffler's Industrial group.
INA said the formal merger, "into a single corporate entity will facilitate the more efficient use of shared resources, for example in the field of research and development, a simpler development and acceleration of common processes and improved development opportunities for employees."
The merger process has already been underway across several of the company's autonomous operations. During 2003 - 2004, INA said, FAG, INA and LuK companies in Europe and South America were merged.
Without giving details, INA said there will be, "further integrations in North America and Asia over the coming months."
(ebearing)
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1.The news above mentioned with detailed source are from internet.We are trying our best to assure they are accurate ,timely and safe so as to let bearing users and sellers read more related info.However, it doesn't mean we agree with any point of view referred in above contents and we are not responsible for the authenticity. If you want to publish the news,please note the source and you will be legally responsible for the news published.
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