Ballard agrees automotive fuel cell assets sale

Ballard Power Systems has announced that it has reached an agreement with both Daimler AG and Ford Motor Company regarding the sale of its automotive fuel cell assets.

These assets will be sold to Daimler and Ford in return for all of the 34.3 million shares in Ballard held by the two firms, which will then be cancelled.

Commenting on the deal, John Sheridan, Ballard's President and CEO, said: "This transaction will enable Ballard to concentrate on growth in fuel cell applications which provide clean energy solutions in commercial markets.

"It also lowers Ballard's risk profile by addressing the realities of the high cost and long timeline for automotive fuel cell commercialisation."

Ballard will transfer its automotive intellectual property and 113 employees - around 20 per cent of its workforce - to Daimler and Ford, as well as contributing $60 million to the establishment of a new private company.

Daimler and Ford will also invest $60 million in the company, which will be 50.1 per cent owned by Daimler, 30 per cent owned by Ford and19.9 per cent owned by Daimler and will be located at Ballard's facilities.

Ballard is expected to gain in the region of $95 million to $105 million as a result of the transaction.


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Source: Adfero