Continental and Dubai-based MAG drop talks on tyre plant

German auto parts maker Continental and Dubai-based MAG group have failed to reach an agreement on a possible takeover by MAG of a tyre-making plant in northern France, where distraught workers staged sit-ins in the spring.


AFP - German auto parts maker Continental on Monday announced a breakdown in talks with the Dubai-based MAG group on the possible takeover by MAG of a tyre making plant in France.

The discussions ended by "mutual agreement," with no common ground having been found, Continental said in a statement.

"The two parties had led intensive discussions but finally agreed that it was not possible to reach common ground for further talks."

MAG vice president Fawaz Sabri said his group "would continue to examine the matter."

Continental had given MAG until September 30 to reach agreement on a letter of intent regarding the factory, located in Clairoix, northern France. The German group offered MAG additional time when the MAG response was deemed "incomplete" on September 30.

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