French automotive suppliers Faurecia and Plastic Omnium SA are competing in the final bidding for a majority stake in German rival Hella GmbH, people with knowledge of the matter told Bloomberg.
Hella’s founding Hueck family has asked for binding offers by Aug. 11 and could make a decision on a winner in the following days, according to the people, who asked not to be identified because the information is private. Any deal could value Hella at around 8 billion euros ($9.4 billion), equivalent to more than 70 euros a share, the people said.
That could make it the second-largest takeover in Germany this year and one of the biggest ever acquisitions of a German company by a French suitor.
Hella makes a variety of automotive lighting systems, sensors, battery systems and electronic power steering components.
Faurecia and Plastic Omnium, which both have smaller market values than Hella, are both planning capital increases to fund the potential acquisition if successful, the people said.
The Hueck family owns about 60 percent of Lippstadt-based Hella, according to data compiled by Bloomberg. There’s no certainty the suitors will submit final offers, and other bidders could still emerge, the people said.
Representatives for Hella and Plastic Omnium declined to comment, while a spokesperson for Faurecia wasn’t immediately available for comment.
Hella ranks No. 41 on the Automotive News list of the top 100 global suppliers with worldwide sales to automakers of $5.5 billion during its 2020 fiscal year.(Bloomberg)