FRANKFURT (Bloomberg) -- The planned merger of Continental AG and Schaeffler Group may be delayed by several years or fail altogether because of U.S. tax demands, a German paper reported, citing unidentified people close to Schaeffler.
The U.S. wants to tax Georg Schaeffler, who lives in Texas and owns 80 percent of the namesake German manufacturer, for $400 million generated through a reorganization of the company, Handelsblatt said, citing unidentified people close to the companies.
Schaeffler Group has agreed to pay the resulting levy, the paper said.
The suppliers could face as much as $1.5 billion in additional U.S. taxes for their merger, Handelsblatt said, citing unidentified people familiar with the matter. People close to the companies disputed that and said any figure has yet to be set, the paper reported.
Marcus Brans, a Schaeffler spokesman, wasn't available for comment.
Hannes Boekhoff, a spokesman for Continental, declined to comment.