German suppliers Continental and Schaeffler Group will integrate their automotive businesses to create a "global champion," Continental said Saturday.
Continental also will spin off its rubber division into an "organizationally and legally independent" unit.
Continental Chairman Hubertus von Gruenberg, who had opposed the combination, will quit his post but remain a member of the board.
The decisions were taken at an extraordinary meeting of Continental's supervisory board Saturday. They are a victory for Schaeffler, which controls 90 percent of Continental's shares after launching a hostile takeover of Continental last year.
Continental said Alan Hippe, the supplier's chief finance officer and head of the rubber division, will leave the company at his own request on Feb. 28. Hippe, 42, will join ThyssenKrupp, Europes biggest steelmaker, as its head of finance on April 1.