Ballard Power Systems has confirmed it will sell its automotive fuel cell division assets to Daimler AG and Ford Motor Company.

Under the terms of the all-share deal, Ballard will receive and cancel the 34.3 million shares owned by the two firms, which are valued at around $168 million.

Ballard expects to post a gain of between $95 million and $105 million from the transaction.

John Sheridan, Chief Executive Officer and President of Ballard, 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.

He added: "At the same time, a new private company will be established and will be positioned for success in automotive fuel cell technology over the longer term, with management and funding provided by Daimler and Ford."

Management and funding for fuel cell technology will now be provided by Daimler and Ford through a new private company to be located at premises owned by Ballard.

Daimler and Ford will hold stakes of 50.1 per cent and 30 per cent respectively, with the remaining stake held by Ballard.

Source:

Ballard Agrees To Sell Automotive Fuel Cell Assets; Will Concentrate On Commercial Markets, 08/11/07
http://phx.corporate-ir.net/phoenix.zhtml?c=76046&p=irol-newsArticle&ID=1074510&highlight

http://www.ballard.com/About_Ballard/Corporate_Direction/Business_Focus.htm

Ballard Announces Third Quarter 2007 Results, 08/11/07
http://phx.corporate-ir.net/phoenix.zhtml?c=76046&p=irol-newsArticle&ID=1074511&highlight

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