Dana, a US-based provider of engineered solutions, has agreed to acquire 55% stake in TM4, a subsidiary of Canada's electricity producer Hydro-Québec, for C$165m (approximately $127m).
As per the deal, TM4 will be responsible for supplying Dana with electric motor systems. Hydro-Québec will maintain 45% stake in TM4.
The transaction is expected to enable Dana to become the exclusive supplier with full e-Drive design, engineering, and manufacturing capabilities.
TM4 is engaged in designing and manufacturing motors, power inverters, and control systems for electric vehicles.
Dana said in a statement: “The transaction establishes Dana as the only supplier with full e-Drive design, engineering, and manufacturing capabilities – offering electro-mechanical propulsion solutions to each of its end markets.”
Through the transaction, TM4 will provide a complementary portfolio to Dana’s electric gearboxes and thermal-management technologies for batteries, motors, and inverters.
Dana president and CEO Jim Kamsickas said: “This joint venture brings together a world leader in mechanical power conveyance and thermal-management technology with an experienced manufacturer of electric motors and inverters to offer a broad range of hybrid and electric vehicle solutions for our customers across all three of our end markets.”
TM4 currently operates a technology and advanced manufacturing facility in Boucherville, Québec.
Hydro-Québec president and CEO Éric Martel said: Today’s announcement strengthens Boucherville’s position as a world-class center of excellence, and further confirms our expertise in the sector.
“We wanted to join an industrial partner to accelerate TM4’s market access to become a global leader, to the benefit of all Quebecers. This transaction will strengthen the activities of TM4 in Quebec.”
Dana said that the transaction further strengthens its position in China which is said to be the fastest-growing market for electric vehicles.
Kamsickas further noted that through the partnership, TM4 will become a pillar in Dana’s e-Propulsion business.
Dana noted that its extensive market breadth will allow TM4 to realize its full business potential.