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Battery-maker Johnson Controls abandons bid for Italian car battery business

Battery-maker Johnson Controls abandons bid for Italian car battery business

Battery-maker Johnson Controls Inc. has abandoned its bid to buy the car battery division of Italy's Fiamm Group because proposed regulatory changes made the deal less attractive.
The Milwaukee-based company, which also makes automotive interiors and cooling and heating systems for buildings, announced in late October it would buy the privately held Italian company's battery operations, which have annual revenue of about $241 million (euro177 million).
Terms of the agreement, which both companies had expected to close at the end of 2006, were not disclosed.
Johnson Controls spokeswoman Monica Levy said Tuesday that European Union regulators had said they would only approve a smaller deal. She said she could not discuss the proposed changes because they were confidential.
"I think it would be fair to say it would have reduced the size and scope of the deal, which made it less attractive," she said.
The deal was to have included the battery segment's operations in Avezzano and Veronella and sales and warehouse operations throughout Europe.
Johnson Controls is considered the world's top maker of automotive batteries and makes 110 million batteries a year. It had hoped the acquisition would allow it to expand its presence in the fast-growing Eastern European market.
The company announced last week that second-quarter power solutions sales were up 13 percent to $988 million (euro726 million). Johnson Control's overall sales climbed to $8.49 billion (euro6.24 billion), up 4 percent from $8.17 billion (euro6.01 billion) last year. The company's profit in the quarter rose 38 percent to $228 million (euro168 million) from $165 million (euro121 million) in the same period last year. Johnson Controls has 136,000 employees in more than 125 countries.
Fiamm, which also makes other automotive components such as warning devices, horns and other items, has annual sales of $583 million (euro428.5 million), according to Johnson Controls.
Shares of Johnson Controls rose 27 cents to close at $102.60 on the New York Stock Exchange.
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On the Net:
http://www.johnsoncontrols.com
http://www.fiamm.com


Updated : 2021-04-20 12:03 GMT+08:00