EU okays French Plastic Omnium, German Elringklinger asset deal, hydrogen fuel cell JV

February 19 (SeeNews) – The European Commission has given the green light to two deals between French automotive parts supplier Compagnie Plastic Omnium SA (EPA:POM) and German peer Elringklinger AG (ETR: ZIL2), including a joint venture to develop and market hydrogen fuel cell stacks and components.

The transactions, which was examined under a normal review procedure, will not raise any competition concerns given the very limited overlaps between the companies as well as the continued presence of a number of strong players in the market, the EC said on Friday.

The two deals were agreed in October 2020.

Under the first one, the parties will set up Germany-based EKPO Fuel Cell Technologies, a joint venture to be controlled at 60% by Elringklinger. Plastic Omnium, which will keep the other 40%, will invest EUR 100 million (USD 121.3m) in the new business to develop its commercial pipeline and boost its production capacity, which is projected to initially yield up to 10,000 units per year. EKPO targets revenue in the range of EUR 700 million and EUR 1 billion by 2030.

In a separate deal, Plastic Omnium is acquiring Elringklinger's Austrian hydrogen subsidiary, Fuelcell Systems Austria, for an enterprise value of EUR 15 million. Through that deal, the French company aims to strengthen its expertise in energy management and hydrogen systems control.

(EUR 1.0 = USD 1.213)

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