Negotiations still seem difficult regarding the takeover of Fonderie de Bretagne (FDB) between Renault and the only takeover candidate Private Assets. After a final meeting this Monday, December 16, 2024 between the State, the Foundry, the Brittany Region, Renault and the buyer, the manufacturer assures today that it has “always said that it would continue to obtain its supplies from the Fonderie de Bretagne, we have kept our commitments in 2023 and 2024 and above all, we remain a customer.”
Renault announces that it is “ready to put in €35 million, a contribution to help with the recovery and especially the diversification of the Fonderie de Bretagne”. The diamond brand recalls “having helped the Fonderie de Bretagne in other ways than just purchasing parts. We have kept our commitments through our parts volumes and also through a financial contribution (notably loss coverage).”
Despite the financial efforts made by all parties (FDB, the State, the Region, Private Assets and Renault), the lack of commitment on Renault production volumes from 2025 to 2028 does not make it possible to achieve a agreement !
Renault: 95% of FDB’s activity
The Fonderie de Bretagne criticizes Renault for not committing to volumes until 2028, leaving no time for the Caudan factory to realize its diversification launched two years after the sales to Callista. “The future of Fonderie de Bretagne cannot be limited to its historic activities (cast iron parts for the automobile industry). Its future involves diversification (products and customers), outside the automotive sector. Today, these reflections are led by the management of the Fonderie de Bretagne, responsible for finding a lasting solution to its takeover project” and specifying that “the automobile market is in full transformation towards electric and all companies in the sector have been transformed. The Fonderie de Bretagne must do the same.”
As a reminder, Renault represents 95% of the parts released by FDB, which also produces for BMW and has managed to conquer new markets such as in agriculture with the giant of the sector, John Deere, shells for defense, street furniture such as manhole covers or even railways. Processes that take time, between studies and leaving the factory.
Hot and cold
Without announcing the signing of the agreement, Renault undertakes to remain a customer “while diversification has not been achieved”. The manufacturer does not announce volume but promises forecasts “in line with the market.” And then, within the framework of the supplier-manufacturer relationship, a re-forecast process either upwards or downwards, depending on reality.”
La Fonderie de Bretagne announced this Monday in a press release that it still needed 48 hours “to find the conditions for a reasonable agreement between the parties”. At the end of Monday’s meeting, according to our information, “nothing has been done” but an agreement seems close. “The dynamic is positive,” slips the office of the resigning Minister of Industry.
In a press release, dated this Tuesday, December 17, the CFE-CGC warns: “A great risk weighs on the cessation of activity due to refusal of takeover offers by the Renault group. Despite the financial efforts made by all parties (FDB, the State, the Region, Private Assets and Renault), the lack of commitment on Renault production volumes from 2025 to 2028 does not make it possible to reach an agreement ! “. The last few hours of waiting are going to be long…
