CANADA > China based Weichai Power is set to invest $163 million in Canada based Ballard Power System

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China based Weichai Power is set to invest $163 million in Canada based Ballard Power System making Weichai Ballard’s the largest shareholder. Weichai’s equity investment of approximately $163 million includes $90 million in technology transfer program to the JV related to Ballard’s next-generation LCS fuel cell stack and power modules for bus, commercial truck and forklift applications in China, joint venture agreement and Weichai’s commitment for at least 2,000 fuel cell commercial vehicles.

Reflecting a price based on a 15% premium to the 30-day VWAP, the investment of approximately $163 million relates to a 19.9% interest in the company.

Additionally, Zhongshan Broad-Ocean Motor Co., Ltd, current Ballard strategic investor and Chinese partner, is also going to invest a further $20 million to maintain its 9.9% ownership position in Ballard.

The transactions are expected to close in the fourth quarter of 2018 and is subject to completion of definitive agreements, regulatory approvals and other customary closing conditions.

According to Randy MacEwen, Ballard President and CEO:

“Ballard is thrilled to partner with Weichai, the world’s largest manufacturer of diesel engines, with a corporate strategy to be China’s leader in zero-emission fuel cell powertrains and FCEVs. Weichai brings considerable expertise in the traditional motive power business, including engine design, application engineering and powertrain integration, along with extensive customer relationships, deep knowledge of the China market, substantial operations scale, supply chain muscle and a solid balance sheet. Weichai together with its parent company is also well positioned with its portfolio of acquisitions and investments in leading bus, truck and material handling OEMs. In addition, Broad-Ocean’s anticipated participation in this strategic collaboration, including its incremental investment in Ballard, is further validation of the exciting China market opportunities.”

Mr. Tan Xuguang, Chairman and CEO of Weichai also added the following about the investment:

“The transition in China to zero-emission vehicles is underway, and we expect fuel cells to play an important role in a variety of motive applications. Weichai, through our joint venture with Ballard, intends to be the leader in development of the Fuel Cell Electric Vehicle supply chain, by offering the most advanced fuel cell stacks and modules. Ballard is the global leader in PEM fuel cell technology and power products, and we envision a strong collaboration with formidable capabilities to address the large market in China for zero-emission buses, commercial trucks and material handling equipment.”

About Ballard Power System

Founded in 1979, Ballard Power Systems engages in the design, development, manufacture, sale, and service of proton exchange membrane (PEM) fuel cell products worldwide. Headquartered in Canada, Ballard Power System provides motive power products, including FCveloCity-9SSL and FCveloCity-1020ACS fuel cell stacks, as well as FCveloCity modules for material handling, bus, commercial vehicle, and light rail applications.

About Weichai Power

Founded in 2002, Weichai Power designs, develops, produces, sells, and repairs diesel engines and related parts, automobiles, and other automobile components in the People’s Republic of China and internationally. Headquartered in China, Weichai Power operates through Diesel Engines, Automobiles and Other Major Automobile Components, Other Components, Import & Export Services, and Forklift Trucks and Supply Chain Solution segments. Weichai Power employs 74474 employees worldwide.