There's been an interesting M&A battle happening between suppliers of automotive plastic components in Europe.
The founding family owners of Hella KGaA Hueck & Co. of Lippstadt, Germany, a maker of automotive lighting, announced Aug. 14 that it would sell its 60 percent stake in the company to French auto supplier Faurecia SA.
Faurecia was up against two other global automotive plastics suppliers, Plastic Omnium, also based in France, and Germany's Mahle Group.
While Mahle has more recognition as a maker of engine systems, filtration and mechatronics, it does have exposure to plastics operations through its heating and air conditioning products.
"By combining their activities, Hella and Faurecia will become the seventh-largest global automotive supplier," the company said in a news release. "This opens up significant potential for further profitable growth. Hella and Faurecia today already are global market leaders in their respective fields. By combining their respective strengths [they] aim to further expand their market position, particularly in key growth areas."
Lighting has come a long way since LEDs took over in that business segment, making Hella a more valuable commodity in the bidding. What was once seen as a basic functional piece of the car is now a key design element for individual brands and nameplates.
“This combination is a unique opportunity to create a global leader in automotive technologies," Faurecia CEO Patrick Koller said in the release. "Together, we will have the critical edge to benefit from the strategic drivers that are transforming the automotive industry."