August 3, 2023: Leoch is to acquire controlling stakes in two China-based lead battery firms owned by GS Yuasa in a deal worth up to Rmb280 million ($39 million).
Leoch, the Singapore-headquartered lead and lithium major, signed an agreement on July 25 to acquire a 70% stake in Tianjin GS Battery (TJGS) and Yuasa Battery Shunde (YBSD).
Leoch said in a Stock Exchange of Hong Kong filing that it will also form a joint venture entity with Japan-based Yuasa.
The agreement should complete on September 28.
Leoch also has an option to acquire an additional 10% in TJGS and YBSD at a later date.
Leoch said the deal will give it a unique strategic edge in the market because the firms are among the world’s largest manufacturers of lead acid batteries.
The move could also pave the way for further expansion and consolidation of the batteries market, Leoch said.
Yuasa said it had been forced to review its Chinese operations following the impact of pandemic restrictions and the introduction of tighter environmental regulations.
Yuasa will still be involved in providing technical support for TJGS and YBSD, but both are expected to grow better as part of Leoch, Yuasa said.
TJGS was established in China in 1991 and mainly produces batteries for the global automarket. The company also has more than 20,000 battery service outlets across China.
YBSD, established in China in 2002, specializes in the development, manufacture and sale of Yuasa brand lead batteries for cars and motorcycles. Its customers have included major automakers in Japan, the UK and other countries.