The bickering and backstabbing are over. After much to-ing and fro-ing between the two companies, Germany's Continental and Schaeffler have finally agreed to a takeover deal that suits just about everyone. Continental, the German auto parts maker has agreed to let ball bearings producer Schaeffler buy a minority stake in the firm for 75 euros ($110.96) per share, valuing Continental at 12.1 billion euros ($17.9 billion).

"In the long run, the Continental and Schaeffler match will be positive," Michael Punzet, an analyst with DZ Bank, told Forbes.com. While Schaeffler has the mechanical expertise, Continental is technologically better positioned, he said. "They fit together."

Continental, the German auto parts maker has agreed to let ball bearings producer Schaeffler buy a minority stake in the firm for 75 euros ($110.96) per share. But its chief executive, Manfred Wennemer, who had been resisting a takeover because he wanted his company to remain independent, has resigned. He asked the supervisory board to release him from his responsibilities by Aug. 31, Continental said in a press release.

Schaeffler's purchase price is 7.0% higher than its previous offer of 70.12 euros ($103.75) per share. Schaeffler, which is run by the billionaire mother-and-son team Maria-Elisabeth and Georg Schaeffler, has committed to keeping its holding below 50.0% for at least four years, Continental disclosed in a press release on Thursday. "With this agreement, the dispute regarding the public takeover offer by the Frankish family owned business for the international car parts supplier has been settled," the company added.

Schaeffler has already acquired control of a 35.9% stake in Continental at a low valuation by the stealth buying of shares through its banks. Its moves have sparked a war of words between Maria-Elisabeth Schaeffler and Wennemer. Last month, Wennemer claimed that Schaeffler could dismantle Continental. Schaeffler said it had no such plans and characterized his remark as "incomprehensible." Wennemer also said that Schaeffler had acted “egoistically, high-handedly and irresponsibly” in relation to the "sneaky" way it had gained control of Continental shares.

Hanover, Germany-based Continental had repeatedly rejected an offer that privately owned Schaeffler made in July, last week saying that its initial bid had been too low but that it was willing to talk about something better. (See "Continental To Schaeffler: 'No, But....")

Now, Continental (other-otc: CTTAY - news - people ) is saying the deal reached with the ball bearings maker offers "an acceptable overall concept." Continental's shares were up 0.7%, or 51 euro cents (75 cents), at 74.00 euros ($109.28), on Thursday morning in Frankfurt, still below the level of Schaeffler's takeover offer. Continental's American depositary receipts have risen by 23.3%, or $20.60, since mid-July, when reports first emerged of a bid from Schaeffler. (See "Continental Inflates On Bid Talk.")