Gothenburg, Sweden, 17 September 2024 – The Board of Directors of SKF Group has decided to initiate a demerger of its automotive business with the aim of listing a separate company on the Nasdaq Stockholm Stock Exchange by means of a tax-free share distribution to its shareholders. SKF plans to list its automotive business on the Nasdaq Stockholm Stock Exchange in the first half of 2026.
Given the different business profiles, end-markets and success drivers of the Industrial and Automotive businesses, the split will help both to sharpen their focus on their distinct market opportunities to enhance customer value, accelerate growth, improve efficiency and competitiveness.
‘Both businesses are global leaders in their respective fields and by focusing more clearly on their respective areas, the independently operated companies will be able to more effectively create value for their customers and capitalise on their strategic strengths. The Board and management believe that by splitting the Group into two independent companies, long-term value can be created that will benefit customers, employees and shareholders.’ Hans Stråberg, Chairman of the Board of Directors of SKF Group, said.
Following the split, the automotive business will be able to make independent business decisions and make independent investments, thus enhancing its ability to adapt more quickly to the transformation of the global automotive market. A more focused and leaner Automotive business model will further enhance its competitive advantage, enabling it to capitalise on more profitable growth opportunities and accelerate the transformation of its profitability.
When we launched our new business strategy in February 2022, we signalled our desire to create a more autonomous automotive business with greater strategic flexibility. I also mentioned that we needed to make bold decisions to unlock more long-term profitable growth opportunities. Launching the demerger of the automotive business is one of these decisions.’ Rickard Gustafson, President and CEO of SKF Group, said.
For the industrial business, the demerger will make it a more focussed company, better able to develop and execute its own strategy and allocate resources. Independently, it will be able to more effectively align its operations to meet the needs of its industrial customers, thereby accelerating growth, improving efficiency, increasing agility and optimising the end-user experience. The move will also strengthen SKF Group’s long-term position as a global leader in industrial technology, creating value for customers by delivering high-quality and sustainable solutions.
The Group’s intention to split SKF’s current automotive business is clear. full-year figures for 2023 show that the Group’s automotive business generated net sales of SEK 30 billion with an adjusted operating margin of 5.6 per cent, compared with net sales of SEK 73 billion in the Group’s industrial business and an adjusted operating margin of 15.4 per cent.
The Group’s Board of Directors plans to present a proposal for a share placement and listing of the automotive business at the AGM in 2026. If the proposal is approved by the shareholders and other stakeholders, SKF shareholders will receive shares in the automotive business in proportion to their existing shareholding in SKF. The Group plans to list the Automotive business on the Nasdaq Stockholm Stock Exchange in the first half of 2026. The Group expects that the allocation of shares in the Automotive business will fulfil the requirements of the Swedish Income Tax Act, Lex Asea, which means that the allocated shares will be exempt from Swedish tax.