PSA Peugeot Citroen has no plans to pull out of parts affiliate Faurecia despite seeing its controlling stake diluted as part of a US acquisition, the head of Faurecia said on Tuesday.
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Peugeot’s stake is set to fall to 57.4% from 71% after Faurecia announced plans to buy clean emissions technology firm EMCON Technologies by issuing new stock.
Asked on BFM radio if this meant the start of a gradual pull-out, Faurecia chairman and chief executive Yann Delabriere said, “No, I don’t think so. The head of PSA has made it clear he wants to accompany Faurecia’s development. PSA doesn’t want to pull out (from Faurecia) as such”.
He did not however rule out PSA lowering its stake below 50%, Reuters reported.
“[PSA chief executive] Philippe Varin has said there is no magic figure and that the composition of Faurecia’s capital would depend on the opportunities for development,” Delabriere said when asked if PSA could end up owning less than half.
Varin was quoted last week as saying M&A opportunities that allowed Farecia to reinforce its position should be seized.
Delabriere also confirmed contacts with European planemaker Airbus and said Faurecia was looking at what it could do for the aerospace industry.
Several of the planemaker’s suppliers such as Britain’s GKN also have roots in the car industry. Some aerospace executives have expressed concerns about the double impact of downturns in the car and aviation sectors on the supply chain.
Global carmakers said on Monday the sector is stabilising following a steep decline in line with the economy, but most stopped short of predicting a rebound next year.
