Faurecia to buy Hella in €6.8bn deal, shares surge

The company said over the weekend that it will buy a 60% stake in Hella from the German Hueck family for €60 a share. The consideration will be paid through a mix of €3.4bn in cash and up to 13.57m in shares.

Faurecia has launched a tender offer at €60 per share for the remaining 40% stake in Hella plus a €0.96 dividend a share offer. The offer represents a 33% premium to Hella's unaffected share price.

Chief executive officer Patrick Koller said: "This combination is a unique opportunity to create a global leader in automotive technologies. I am convinced that Faurecia and Hella have an outstanding fit as we share common vision, values and culture.

"Our two talented teams have been cooperating very efficiently since end 2018, they have demonstrated their combined capabilities. Together, we will have the critical edge to benefit from the strategic drivers that are transforming the automotive industry.

"By combining our product portfolios and market reach, we will accelerate profitable growth, through innovation, with more electronic and software content and enhanced execution quality. Our financial profile will remain solid, with strong attention paid to sustained cash generation and deleveraging the company. I am confident that this combination will create sustainable value for Faurecia’s and Hella’s customers, employees and shareholders."

At 1005 BST, Faurecia shares were 6.9% higher at €41.09.