PARIS, Feb 9 (Reuters) – Valeo VLOF.PA announced on Wednesday evening an agreement with the German group Siemens
SIEGn.DE to buy out its shares in their joint electric motor JV for 277 million euros and strengthen its position in the car electrification business.
Since the creation in 2016 of the Valeo Siemens eAutomotive joint venture, Valeo had the right after five years to buy out its partner’s 50%, and Siemens the right to sell its shares.
“This is an important step towards creating a stronger Valeo,” explained the new general manager of the French automotive supplier, Christophe Périllat.
“(With the) integration of Valeo Siemens under a common roof, under the roof of Valeo, it is the creation of a true champion of electrification”, he added during a teleconference of hurry.
This integration is planned from July 1st.
The French group thus brings together all of the JV’s high-voltage motor, inverter and charger activities, intended for electric vehicles and rechargeable hybrids, with its other low-voltage hybridization systems.
Valeo’s “Powertrain System” division, hitherto the group’s second business behind visibility systems (lighting and windscreen wipers), could, thus expanded, quickly become the group’s first activity.
While the entity’s pro forma turnover amounted to 5.4 billion euros in 2021, it could reach 8.5 billion euros in 2025 and exceed 11 billion in 2030, added Christophe Périllat, i.e. a doubling compared to last year due to the strong demand for electrified vehicles anticipated over the decade.
Valeo, which will publish all of its annual results on February 25, specified that the amount of the acquisition would be financed by available cash and that, in accounting terms, its net debt would increase by 741 million euros.
(Gilles Guillaume, edited by Jean Terzian)