In the context of Valeo’s acquisition of FTE, the European Commission has expressed doubts on the passive hydraulic actuator market in light of the European Commission Merger Regulation. Valeo is therefore considering the divestment of its passive hydraulic actuator business with a view to obtain the approval of the FTE acquisition by the European Commission.
Accordingly, Valeo has sought the best possible option for its employees and clients in order to find a suitable acquirer for this business activity.
Against this background, Valeo initiated discussions with the Italian car-part supplier, Raicam, specialized in clutch and braking systems for both the original equipment market and the replacement market. These discussions have led to a solid acquisition project, which is subject to prior consultation with works councils, and which requires approval by European Commission within the framework of its review of the FTE project.
In 2016, Valeo’s passive hydraulic actuator business generated a 76 million euro turnover. It currently employs slightly over 400 employees in three industrial sites located in Mondovi, Italy for the main site, Gemlik, Turkey and Nanjing, China. The plan to establish a footprint in India, which has been under preparation for some time, should be implemented by Raicam in the North West of India.
The acquisition of FTE remains subject to the prior formal approval of the European Commission.
If Valeo obtains clearance of the FTE transaction, the contemplated divestment could be finalized in the last quarter of 2017.