SKF’s Board of Directors has approved a plan to separate its Automotive division with the goal of listing it on Nasdaq Stockholm by the first half of 2026. The separation will occur through a Lex Asea distribution, allowing shareholders to receive shares in the newly independent Automotive business in proportion to their existing SKF holdings.
This move comes as SKF recognizes the distinct business needs, market dynamics, and growth drivers for its Industrial and Automotive segments. By operating as two standalone companies, each division will be better positioned to enhance customer value, drive growth, and improve operational efficiency.
“Both divisions are leaders in their respective markets. This split will allow them to sharpen their focus and capitalize on opportunities more effectively. The separation is expected to benefit customers, employees, and shareholders,” said Hans Stråberg, Chair of SKF’s Board of Directors.
The newly independent Automotive business will be better equipped to respond to the rapidly changing global automotive market. With the ability to make independent decisions and targeted investments, it is expected to improve profitability and seize new growth opportunities.
“When we introduced our business strategy in 2022, we outlined the need for greater autonomy within our Automotive division to ensure strategic flexibility. This decision to separate is a bold move aimed at unlocking long-term profitable growth,” said Rickard Gustafson, SKF’s President and CEO.
The Industrial segment, meanwhile, will benefit from greater resource allocation and an enhanced ability to meet the needs of industrial customers. This focused approach is expected to accelerate growth and improve efficiency.
SKF’s Automotive division generated net sales of SEK 30 billion in 2023, with an adjusted operating margin of 5.6%. The Industrial segment, by comparison, had net sales of SEK 73 billion and a 15.4% adjusted operating margin.
The proposal to distribute and list the Automotive business will be presented to SKF shareholders at a meeting in 2026. If approved, the Automotive business will be listed on Nasdaq Stockholm, with shares distributed tax-free under Sweden’s Lex Asea provisions.
