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.
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.