Takeover talks between UK glass group Pilkington and former Ford unit Visteon have been ended by mutual consent. Success would have seen Pilkington double its stake in the US automotive glass market t…
Takeover talks between UK glass group Pilkington and former Ford unit Visteon have been ended by mutual consent. Success would have seen Pilkington double its stake in the US automotive glass market to an estimated 40%. Pilkington had signed a letter of intent with Visteon in June to form the joint venture. Pilkington would have assumed 81% ownership and management control of Visteon“s glass operations, which include four float glass lines and two fabrication plants. It appears that the collapse in talks resulted from the failure to reach agreement on the key issues of price, an arrangement with the United Autoworkers Union, and a contract with Ford. “It was a very complex deal involving Visteon, Ford and the unions,” said Paolo Scaroni, Pilkington CEO. Scaroni said that the talks had ended amicably and added that he did not rule out a resumption of negotiations. According to Scaroni, the failure to reach a deal will not affect Operation Step Change, the company“s programme to increase the efficiency and profitability of its US operations. Peter J. Pestillo, Visteon chairman and CEO, said his company was “very disappointed” that an agreement could not be reached but added that Visteon remains committed to developing an “acceptable business solution” for its glass operations.