The trend towards concentration in the European and international automotive supplier sector is continuing unabated. Last week French automotive suppliers Faurecia S.A. (276, Rue Louis Blerrat, F-92641 Boulogne), a subsidiary of PSA Peugeot Citroën and the leading European producer of seating systems, announced its acquisition of a 37.9% holding (52.9% of voting rights) in Sommer Allibert S.A. (F-92748 Nanterre). It was also announced that an offer would be sent to the minority shareholders of SAI Automotive AG once the acquisition had been completed. Sommer Allibert has a majority holding in SAI Automotive AG, which unites its automotive supplier business.

To enable minority shareholders of SAI to part with their holdings at favourable terms in the course of the acquisition of Sommer Allibert, and given that it intends to integrate SAI in the Faurecia Group, Faurecia has announced its intention to extend the takeover bid to outside shareholders of SAI. The acquisition price would be EUR 15 per share, representing a premium of 51% on the average share price of the past three months for minority shareholders. The takeover bid will probably be made after the acquisition of Sommer Allibert, which also requires the all-clear from the European competition authorities.

A current announcement states that “SAI Automotive AG welcomes the planned entry of Faurecia as a future, indirect majority shareholder with a view to the future development of the company and the further reinforcement of its market position”.

In 1999, Faurecia reported consolidated sales of EUR 4.3bn (+ 8.2%), with automotive seating accounting for EUR 2.8bn, automotive interior fittings for EUR 386m and front end parts for EUR 292m. Sommer Allibert´s overall sales totalled EUR 3.5bn in 1999. SAI Automotive AG is the European market leader in automotive interior fittings in plastic, with sales of EUR 2.13bn last year.