Hindujas talk to Valeo for possible $1.5 billion acquisition: Report

31 March 2008

Mumbai: The Hinduja Group is reported to be in talks with Valeo S A for the acquisition of a controlling stake in the company, at an expected deal size of $1.5 billion, according to a report in the Business Standard that cites unnamed sources.

The Hinduja Group owns  India's second largest commercial vehicle manufacturer, Ashok Leyland Ltd. Valeo SA is Europe's third-largest auto component maker.

The report says that Hinduja executives met a team of Valeo's top executives in Paris last week, and if a deal materialises, it would have synergies with Ashok Leyland as well as another Hinduja group company, Ennore Foundries Ltd.

There were no official responses to the paper's requests with the business group.

Ennore Foundries is now known as Hinduja Foundries Ltd, and makes auto parts.

Valeo has previously announced its intention to divest assets valued at around €2 billion, equivalent to $3.2 billion, in terms of sales by the end of 2008. This includes the sale of its wiring harness unit last year. The company intends to buy new assets of equivalent value.