The potential breakup of the major German battery manufacturer Varta is seen as a problem for the entire industry in the country, according to the battery expert Dirk Uwe Sauer.
A creditor group led by Deutsche Bank and the financial investors RBC BlueBay, Blantyre and Whitebox announced earlier this week that it intends to spin off the well-known household battery business from the Varta Group, blaming the company's strained financial situation.
On Friday, Varta confirmed it had filed for preliminary insolvency under self-administration, in a bid to secure its economic future.
"There are only a few companies like Varta in Germany," said Sauer, a professor at RWTH Aachen University.
"If the company's profit center is carved out, the question is how future innovation will be financed," he said.
