FRANKFURT -- German tire and automotive supplier Continental AG has secured just over half of the stock in rival Phoenix AG after it launched a takeover offer in March, Continental said on Thursday.
"With 50.02 percent, we now have a majority stake and we feel confident we will reach our goal of owning 75 percent of the stock," said Continental Chief Executive Manfred Wennemer in a statement.
Continental's takeover bid for automotive supplier Phoenix is worth around 227 million euros ($275 million). The first deadline for investors to exchange their stock at 15 euros per share ends on June 28.
Shares in Continental traded up 0.6 percent at 37.84 euros by 0948 GMT, while Phoenix stock dropped 0.4 percent to 15.03 euros.
According to German takeover law, Phoenix shareholders will get another chance to reconsider selling their holdings once the first deadline expires.
Through the deal, the world's fourth largest tire maker will increase annual sales at its ContiTech unit to an estimated 2.8 billion euros.