Plastic Omnium has inked a Memorandum of Understanding with Faurecia to acquire its Exterior Systems business - bumpers and front-end modules - for an enterprise value of EUR665m (US$733m).

Faurecia's Exterior Systems' activity has EUR2bn sales and employs 7,700 people in 22 industrial sites in Germany, France, Spain, Slovakia, North and South America. Half the sales come from Germany where Plastic Omnium has no production site for this activity

Plastic Omnium says the acquisition will now make it a global EUR8bn company, placing it among the 25 largest automotive suppliers worldwide.

The transaction must be submitted to the competition authorities concerned as well as the legal requirements regarding employee representatives in the countries involved.

The transaction should be finalised next year.