Paris, France
Faurecia SE will be buying a majority 60% stake in German automotive supplier Hella GmbH & Co. It has also offered to acquire the rest in an $8 billion deal from the founding Hueck family. The Hueck family will take up to 9% of the combined company.
Investors led to
the rise of Hella’s shares since reports came out that the Hueck family was
looking to reduce its holding. Faurecia beat out competition from German
car-parts maker Mahle and France’s Plastic Omnium.
This deal is one
of the biggest in the European auto parts industry in recent years and would
create a huge company with 150,000 employees. Together, both Faurecia and Hella
will become the world’s seventh-largest auto supplier and sell electric
mobility products and automated driving services to the industry.
Patrick Koller,
CEO, Faurecia, mentioned that the combined company would have the critical edge
in transforming the automotive industry.
The final offer
document will be published in mid-September after approval from BaFin, the
German regulator. The closing of the transaction is expected in early 2022.
Hella makes lighting and electronic
components, power and battery electronics, along with radar sensors for
driver-assistance systems. This is expected to blend well with Faurecia’s
ambitions.
Early this year,
Hella sold its front camera software business to Volkswagen Group.
The deal comes
when auto component makers are suffering from a global semiconductor shortage
and supply chain disruptions during the pandemic. Hella expects the shortage to
continue this fiscal year whereas Faurecia expects auto production to rebound
over the coming years.
Source – The Star
Image Source: Faurecia Website
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