The details of the sale were confirmed at a meeting of Siemens’ supervisory board on July 25.

Following the sale, which must first be granted approval from the relevant antitrust authorities, Continental will become one of the world’s five largest automotive suppliers. Assuming no delays in antitrust clearance occur, the sale should be closed towards the end of this year’s fourth quarter. Integration will be concluded by the end of 2009.

The sale to Continental spells an end to the possibility of an IPO for the VDO unit as previously considered.

At the same time as this deal was approved Siemens also announced its intention to purchase the U.S. manufacturer of medical equipment Dade Behring for US$7 billion.