JSE-listed energy storage and automotive components manufacturer Metair has submitted an indicative nonbinding offer to acquire battery manufacturer Tovarna Akumulatorskih Baterij (TAB), in Slovenia.

TAB owns aftermarket automotive battery manufacturing facilities in Slovenia and Macedonia and an aftermarket battery distribution network throughout Europe, as well as a global industrial battery business and an energy storage business.

Metair is in exclusive discussions regarding the potential transaction, for which the indicative purchase consideration is €300-million.

The probable date of completion of the potential transaction is uncertain, but it will likely only occur during the final quarter of this year.

If implemented, the transaction will be part of Metair’s stated strategy of expanding its energy vertical, with a targeted combined automotive battery production of 15-million units and industrial cell manufacturing of two-million units a year.

The transaction will also result in Metair becoming a key player in the global energy storage solutions market.

Metair has identified TAB as a strategic asset, as it has a strong global presence in the industrial batteries segment and provides a platform to secure Metair’s own European aftermarket distribution network.

If the transaction is concluded, it is expected to leverage the scale of the combined group and TAB’s research and development (R&D) expertise to allocate increased resources to R&D that is directed towards new technologies, such as lithium-ion batteries.

Additionally, the transaction will balance Metair’s original-equipment manufacturing and aftermarket exposure in automotive batteries and also provide a balance between the automotive and industrial segments.

The transaction will enhance Metair’s international brand portfolio, with the TAB-owned distribution footprint, into new regions and deliver on Metair’s desire, through marketing excellence, to become a consumer-focused business with the strength and reach of the TAB brands.