News

TÜV Rheinland and TÜV SÜD Plan Merger


COLOGNE and MUNICH, GERMANY; NEWTOWN, CT, February 15, 2008

TÜV Rheinland Holding AG and TÜV SÜD AG plan to merge into an international technical services group with the core competencies testing, inspection, certification, and training. The merger of the supporting associations and subsequent consolidation of the two groups is scheduled before the end of the year.

The new company would employ about 25,000 people worldwide and achieve sales of more than EUR 2.2 billion. This was announced by the CEOs of TÜV Rheinland and TÜV SÜD, Prof. Dr.-Ing. habil. Bruno O. Braun and Dr.-Ing. Axel Stepken at joint press conferences in DÜsseldorf and Munich on Feb. 13. The project is subject to approval by the responsible antitrust authorities and the relevant committees of the associations and the groups.

"An international company with a strong German brand, providing economic added value to its customers through neutral testing and certification of quality and safety, is becoming even stronger internationally," said Prof. Braun. "The merger gives us significantly greater international capability and reach. We will become even more attractive as an employer for qualified specialists and managers."

The CEO of TÜV SÜD, Dr. Stepken, said, "This merger is about international growth. Through the planned merger, we are creating one of the biggest and most efficient groups for testing and certification, both nationally and internationally. Already today, significant shares of the sales of both companies come from outside Germany. Combining our strengths will enable us to faster access and expand international growth markets."

With regard to the employees of the companies, both CEOs stated that the merger will not result in any job losses.

In addition to the merger of associations and the groups, a joint foundation is planned to hold shares in the new group as an inalienable, neutral, and independent third party. The purpose of the foundation shall be to promote the next generation of engineers. The merged associations and the foundation will be located in Cologne. The headquarters of the merged group shall be in Munich.

The current CEO of TÜV Rheinland, Prof. Braun will head the managing board of the new group. His deputy and designated successor shall be Dr. Stepken, the current CEO of TÜV SÜD. The handover is scheduled for Jan. 1, 2010, after which Prof. Braun shall switch to the supervisory board and become its chairman.

The merger timetable calls for due diligence and initiation of the reviews by the relevant antitrust authorities to be in place by May 2008. After approval by the boards of directors and membership meetings of the associations, the general meetings of the AGs then will be asked to approve the merger by the end of June. The merger of the associations is scheduled to follow approval by the antitrust authorities.

TÜV SÜD

TÜV SÜD AG, Munich, is an international service groups in the fields of consulting, testing, certifying, and training. Consolidated sales in 2007 grew for the fifth successive year to almost EUR 1.3 billion of which more than a quarter resulted from foreign business. The company employs 13,300 people worldwide. TÜV SÜD is member of the Diversity Charta of the Federal Government.

TÜV Rheinland

TÜV Rheinland Holding AG, Cologne, is an international service group. In the 2007 financial year, the company again reported record sales of almost EUR 1 billion. For the first time, sales outside Germany reached 40% of total sales. The company currently has 12,500 employees, more than half of them outside Germany. TÜV Rheinland supports the UN Global Compact.

About TÜV Rheinland, North American Division

TÜVRheinland® is a leader in independent testing and assessment services. The $1.2 billion-corporation is comprised of an international network of more than 10,000 employees at 340 locations in 60 countries and serves most industry sectors and markets worldwide. TÜVRheinland is a member of the Global Compact of the United Nations, a global network of companies and interest groups.  For additional information, visit www.us.tuv.com.