(Reuters) - German automotive supplier Schaeffler and Vitesco took a further step towards merging the companies on Monday with an agreement to exchange 11.4 Schaeffler shares per Vitesco Technologies share, they said on Monday.
The preliminary agreement is subject to approval by the joint valuation expert, the court-appointed merger auditor and the supervisory boards of Schaeffler and Vitesco, statements from the companies said.
On October 9, Schaeffler and Vitesco agreed to merge to create a more competitive supplier in the electric vehicle segment, and to simplify the Schaeffler family's empire, which includes stakes in Vitesco and Continental.
Schaeffler shares were up 2.3% while Vistesco's dropped 9% at 0854 GMT.