SKF to Spin Off Automotive Business, Aiming for 2026 Nasdaq Listing

On September 17, 2024, SKF’s Board of Directors announced plans to spin off its Automotive business, aiming for a separate listing on Nasdaq Stockholm through a Lex Asea distribution to shareholders. 

The goal is to complete this listing in the first half of 2026. This separation will allow SKF to focus more sharply on the unique opportunities and challenges of both its Automotive and Industrial segments, boosting customer value, accelerating growth, and enhancing overall efficiency and competitiveness.

“Both businesses are global leaders in their respective fields and will, through a clearer focus, increase customer value and leverage their strategies as standalone companies. The Board of Directors and Management therefore believe that long-term value can be created by splitting the Group into two separate companies, benefiting customers, employees and shareholders”, says Hans Stråberg, Chair of SKF Board of Directors.

Separating the Automotive business will enable it to respond more swiftly to changes in the global automotive market by making independent decisions and investments. This focused approach will create a leaner, more agile business model, enhancing its competitive edge and uncovering new opportunities for profitable growth. It will also help accelerate the transformation toward greater profitability.

“When we launched our new business strategy in February 2022, we articulated a desire to create a more autonomous Automotive business to provide strategic flexibility. I also said that we need to take bold decisions to unlock additional long-term profitable growth opportunities. Initiating a separation of the Automotive business is one of those decisions,” says Rickard Gustafson, President and CEO.

The more focused Industrial company will be better positioned to refine its strategy and manage resources effectively. By aligning its operations more closely with the needs of industrial customers, it aims to drive accelerated growth, improve efficiency, and enhance responsiveness and user experiences. This will solidify SKF’s role as a leading global industrial technology provider committed to high-quality and sustainable solutions.

SKF plans to separate its Automotive business, which had net sales of SEK 30 billion and an adjusted operating margin of 5.6% in 2023. In comparison, the Industrial segment reported SEK 73 billion in net sales and a 15.4% operating margin. The Board of Directors will propose this separation and listing at a 2026 shareholders meeting. If approved, SKF shareholders will receive shares in the new Automotive entity, which is expected to be listed on Nasdaq Stockholm in the first half of 2026.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.