US: Johnson Controls and Saft finish battery joint venture
Johnson Controls and Saft have reached an agreement to end their joint venture, Johnson Controls-Saft, formed in 2006 to develop and manufacture Li-ion vehicle batteries.
Under the terms of the agreement, Johnson Controls will acquire Saft's share of the company for US$145m in cash, with the deal including an up-front royalty payment by Johnson Controls to Saft in return for an expanded licence to Johnson Controls to use certain Saft Li-ion technology in all markets.
The transaction, which is subject to regulatory clearances, could close as early as this 30 September.
"We appreciate the relationship we have had with Saft and are pleased we have been able to resolve this matter in a mutually beneficial way," said Johnson Controls
power solutions president Alex Molinaroli.
The parties' agreement to end their relationship will also terminate all legal proceedings between the companies.
"I am very pleased to have reached a rapid positive resolution to this dispute which is in the interests of our customers, staff and shareholders," said Saft management board chairman John Searle.
"It also eliminates the cash and P&L burden of the joint venture on Saft. Saft management is now fully concentrated on pursuing opportunities for our Li-ion technologies in all the markets we choose."