DETROIT - Canada's Ballard Power Systems on Wednesday said it agreed to sell its automotive fuel cell business to German car and truck maker Daimler AG and Ford Motor Co.
In a statement, Ballard said it will receive and cancel the 34.3 million Ballard shares owned by Daimler and Ford which are valued at about $168 million. Ballard said it expects to record an estimated gain on the transaction of $95-to-$105 million.
As part of the transaction, Daimler and Ford will manage and fund automotive fuel cell technology development programs through a new private company located at Ballard's facilities, according to a company statement. The company will be called Automotive Fuel Cell Cooperation.
The statement said Daimler and Ford will contribute $60 million to the new private company and Ballard will invest $60 million. The ownership structure of the new private company will be 50.1 percent Daimler, 30 percent Ford and 19.9 percent Ballard.
We have identified the future fields of activity and key technologies for zero-emission mobility and we are investing specifically in expanding our competencies in these fields, Thomas Weber, member of the board of management of Daimler with responsibility for group research, said in a prepared staetment.
Our majority stake and partnership with Ford in Automotive Fuel Cell Cooperation is a logical step in this direction.
Reuters contributed to this report