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Osram Licht AG (OSR.XE) said Tuesday that it has agreed on key terms for a potential takeover by Ams AG (AMS.EB), including job protections for its German employees.
Osram OSR, +0.07% said its boards recommend Ams’s AMS, -1.28% takeover offer to shareholders, who have until Dec. 5 to accept.
Under the business combination deal struck with Ams, Osram’s employees are protected from layoffs for about three years if a deal goes through and roughly half of the central functions would be managed from its Munich location as the co-group headquarters, it said.
“The most important thing is that the employees at German locations are protected from merger-related layoffs until the end of 2022,” Osram Chief Executive Olaf Berlien said. Osram’s works council said Monday that it filed a court appeal against Germany’s market regulator BaFin in order to stop the takeover offer.
Meanwhile, Osram reported some preliminary earnings figures for the fourth quarter. Revenue fell by 5.3% to 924 million euros ($1.02 billion), while it swung to a EUR203 million aftertax loss in the quarter. The company said it expects “a stabilization” in fiscal 2020.