Germany's Continental AG announced plans on Tuesday to make its ContiTech rubber and plastics division an independent entity that is likely to be sold. The decision to sell the division is considered the most probable strategic move. The separation will occur following the spin-off of its automotive unit and the sale of its Original Equipment Solutions business. ContiTech is expected to operate independently by 2026. This step marks a continuation of Continental's efforts to divest businesses. The company's board recently approved the spin-off of its automotive division, which is set to have cash assets of 1.5 billion euros ($1.64 billion) upon completion. Continental intends to spin off and publicly list 100% of its automotive unit on the Frankfurt stock exchange amidst challenging times for the German automotive and tire manufacturer and the broader European auto industry.