FRANKFURT: French automotive suppliers Faurecia SE and Cie Plastic Omnium SA are competing in the final bidding for a majority stake in German rival Hella GmbH, people with knowledge of the matter said.
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 (US$9bil/RM40bil), equivalent to more than €70 a share, the people said.
That could make it the second-largest takeover in Germany this year, behind Vonovia SE’s pursuit of real estate rival Deutsche Wohnen SE, according to data compiled by Bloomberg.
It would also be one of the biggest ever acquisitions of a German company by a French suitor. Shares of Hella jumped 11% in Frankfurt trading today, hitting an intraday record and valuing the company at about €7.5 billion.
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% 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.
