The head of French car parts maker Valeo predicted on August 28 it would make a further acquisition this year to bolster its technology. "If prices remain at current levels, which are quite low, it seems to me that we should make an acquisition," Chairman and Chief Executive Thierry Morin told Reuters in an interview.
"I think we are a consolidator. Valeo has done some acquisitions and some disposals. We are breathing in and out in the usual way and I honestly don't see us as a target."
The comments come amid speculation that Valeo among others could be interested in parts of German tyre and components group Continental AG, but Morin declined to comment directly. Continental, which ran up debts after buying the automotive business of Siemens, has lost a battle for independence against family-owned bearings maker Schaeffler.
"We are always looking at what is possible in terms of acquisitions," Morin said when asked whether Valeo had an appetite for any Continental assets to be sold by Schaeffler. "Continental was enormously in debt and so became fragile. Valeo is looking at acquisitions but I'm obviously not going to say which ones".
Valeo has pledged to sell operations with sales of 2 billion euros and make a similar amount in acquisitions as it tries to focus on value-added products such as in-driving assistance.