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The eBearing News
January 17, 2005
INA and FAG to Formally
Merge in 2006
copyright © 2005 eBearing Inc.
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
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."
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- by Bruce A. Carr
from individual research,
tips and commercial sources.
Bruce Carr edited this content.
Copyrighted material; unauthorized reproduction prohibited.
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eBearing.com ... for everything that moves™
Entire contents Copyright © 1999-2011, eBearing Inc. All rights reserved.
eBearing.com and "... for everything that moves" are registered trademarks of eBearing Inc.
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