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France's Faurecia to review more activities as it ramps up divestments

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Logo of Faurecia near the company's headquarters in Nanterre
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(Reuters) - French auto supplier Faurecia will review all its business activities under 1 billion euros ($1.1 billion), finance chief Michel Favre said on Tuesday, as it ramps up its divestment plan following its acquisition of German rival Hella,

"We are building a very powerful group, so we need to focus on the key business," Favre said in a call with analysts, where he ruled out plans to sell the group's clean mobility business.

"All activities which are below 1 billion euros are under scrutiny," he said, without saying how this would be calculated.

The group on Tuesday doubled its divestment target to 1 billion euros in proceeds by the end of next year, as it suspended this year's dividend payment and said it had protectively renegotiated its debt covenant.

Faurecia said it has bought 81.5% of Hella for a total price of 5.4 billion euros, but stopped buying shares at the end of February.

Its stock was trading up around 5% in early trading.

($1 = 0.9338 euros)

(Reporting by Sarah Morland, Elena Vardon; Editing by Edmund Blair)

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