The preliminary agreement is subject to approval by the joint valuation expert, the court-appointed merger auditor and the supervisory boards of Schaeffler and Vitesco, statements from the companies said.

On October 9, Schaeffler and Vitesco agreed to merge to create a more competitive supplier in the electric vehicle segment, and to simplify the Schaeffler family's empire, which includes stakes in Vitesco and Continental.

Schaeffler shares were up 2.3% while Vistesco's dropped 9% at 0854 GMT.

(Reporting by Amir Orusov and Anastasiia Kozlova, Editing by Rachel More)