€6.7bn deal boosts European automotive electronics

August 29, 2021 // By Nick Flaherty
€6.7bn deal creates major European automotive electronics supplier
Faurecia’s proposed €6.7bn purchase of Hella in Germany will create the world’s seventh largest global automotive supplier with a key focus on electronics and software

French automotive supplier Faurecia has reached an agreement to buy automotive supplier Hella for €6.7bn.

A public tender cash offer for all Hella shares at €60.96 per share is expected to be resolved by the Hella annual general meeting on September 30, 2021. This is a premium of 33 percent on the current share price.

Hella had a 2020 turnover of €6.3bn, giving the combined group a turnover of €23.8bn, boosting Faurecia into seventh positionon the global rankings and the fifth largest European supplier.

Top ten automotive suppliers 

  1. Robert Bosch            $46.5bn
  2. Denso                       $41.1bn
  3. ZF Friedrichshafen   $33.4bn
  4. Magna International  $32.6bn
  5. Aisin                          $31.9bn
  6. Continental                $29.6bn
  7. Faurecia + Hella        $28.1bn
  8. Hyundai Mobis          $25.1bn
  9. Lear                           $17.1bn
  10. Valeo                         $17.0bn

Source: eeNews Europe, company reports

The combined Group will focus on four growth areas with sales of €3.7bn and around 3,000 software engineers across 24 production sites and 21 R&D centres. This will see Faurecia as the fifth largest European supplier and in the top ten in America and Asia with a focus on electric mobility, including hydrogen solutions, ADAS & Autonomous Driving, the Cockpit of the Future and Lifecycle Value Management.

The company is aiming to increase the Hella business to €7bn by 2025 even in the face of the decline of the traditional ICE car market by opening up sales opportunities for Hella through Faurecia’s access to key Chinese and Japanese OEMs.

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