Continental will use the KTAS name and logo for a transitional period following the sale. The latter is subject to the usual consents and approvals including from the ACCC and the Foreign Investment Review Board.
It is expected there will be no objections and the sale will go ahead as planned, netting Wesfarmers a handy pre-tax profit of approximately $270 million to $275 million, subject to completion adjustments.
Kmart Tyre and Auto Service has 258 stores across Australia with over 1,200 employees. It is one of Australia’s largest tyre, automotive service and repair retailers.
In the words of Wesfarmers, KTAS is "the largest single employer of apprentice motor mechanics in Australia".
Continental is based in Germany. Its five divisions in 2017 generated sales of 44 billion Euro and it currently employs more than 243,000 people in 60 countries.
Alle Continental Vorstände 2017 Source: Continental
Wesfarmers is a top 20 company on the ASX. It was founded in 1914 in Western Australia as a farmers' cooperative. The company is headquartered in Perth. It acquired KTAS as part of the Coles Group in 2007.
Wesfarmers plans to float the grocery business Coles as a separate company, later this year. The 20 billion dollar deal, one of the biggest in Australia's corporate history, will see Wesfarmers retain a 15 percent stake in Coles.
Also of interest
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