Ballard Strengthens Relationship with EBARA
Ballard Power Systems Inc. (Vancouver, BC) announced that it has signed a memorandum of understanding (MOU) with EBARA Corp. (Japan) to enhance their strategic relationship and simplify their stationary power alliance.
Under the MOU, Ballard will acquire EBARA's interest in Ballard Generation Systems (BGS), Ballard's stationary power products subsidiary. The MOU is consistent with Ballard's plans to enhance its ownership of BGS and streamline the development of Ballard's commercial stationary power generators.
Ballard will purchase EBARA's interest in BGS for US$35.8 million, through the issue of Ballard's common shares. EBARA has agreed to not sell the Ballard common shares for a period of four years. The transaction is expected to close in November 2001, subject to the completion of formal documentation and regulatory approvals.
”EBARA is a key strategic partner for the commercialization of our stationary power generators. Enhancing our relationship with EBARA allows us to work together more efficiently to bring products to market,” said Jim Kirsch, president of BGS. “It also reflects that Ballard and EBARA have expanded their relationship beyond stationary power generators to include co-operation on the development of components for fuel cells and fuel cell systems.”
”We see PEM fuel cells revolutionizing power generation in the coming years and Ballard and EBARA being identified with that revolution,” said Hiroyuki Fujimura, chairman of EBARA. “Our ability to work together will be strengthened by the enhanced relationship we are putting in place today. We see EBARA Ballard becoming the pre-eminent fuel cell power generator manufacturer in Japan.”