October 14, 2019 / 5:51 AM / a month ago

Car parts group Faurecia to buy full control of SAS venture from Continental

FILE PHOTO: Patrick Koller, Chief Executive Officer of French car parts supplier Faurecia, poses before the company's 2016 annual results presentation in Paris, France, February 9, 2017. REUTERS/Philippe Wojazer/File Photo

PARIS (Reuters) - French car parts group Faurecia (EPED.PA) said on Monday it had agreed to buy full control of the SAS joint venture it runs with German auto group Continental (CONG.DE), in a deal which should boost the company’s profits.

Faurecia said it would buy the remaining 50% stake in the venture from Continental for 225 million euros ($248 million), and that the takeover would be immediately accretive to its operating margin, net income and return on capital employed.

Faurecia shares were down 2% in early session trading.

The SAS joint venture was established in 1996 and the company has become a key player in complex interior module assembly and logistics, with 2019 sales expected to reach around 700 million euros, said Faurecia.

“SAS has a strong growth potential and represents an excellent opportunity for Faurecia strategically and financially,” said Faurecia chief executive Patrick Koller.

Reporting by Sudip Kar-Gupta and Benoit Van Overstraeten; Editing by Muralikumar Anantharaman

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