German car parts supplier Schaeffler on Monday announced it wanted to buy out Vitesco Technologies, a former division of Continental, in a bit to create a dominant player in the burgeoning electric mobility sector.

Schaeffler said it had launched a voluntary public tender offer for powertrain specialist Vitesco, offering 91 euros ($96) per share in cash — a 21-percent premium on Friday’s closing price.

The deal values Vitesco at 3.64 billion euros, according to Bloomberg News, and comes as part of a wider shift in the auto industry towards cleaner driving.

Holding companies owned by the billionaire Schaeffler family already control 49.9 percent of Vitesco’s shares.

Vitesco, a maker of electric motors and other car components, was spun off from German giant Continental in 2021.

Joining up with Vitesco would create a “leading motion technology company”, Schaeffler said.

“Especially in the fields of electrification, Schaeffler and Vitesco have highly complementary technology portfolios” with “significant growth potential”, it added.

Schaeffler, one of German’s largest auto suppliers, said the deal could lead to around 600 million euros in cost savings annually by 2029.

The combined company would employ more than 120,000 people worldwide.

If the merger is approved by shareholders, Schaeffler expects the deal to be completed by late 2024.