America based Fuel cells developer NEAH Power signs letter of intent with Bangalore based Eko Vehicles, to explore acquisition or merger plans

US based fuel cells developer; NEAH Power reported Friday that it had signed a letter of intent with Indian firm, Eko Vehicles, for a possible merger or acquisition. The Bangalore based Eko Vehicles is a manufacturer of two-wheeled electric vehicles and its agreement with the US based firm will see the two firms explore potential acquisition or merger plans.

The plan will see NEAH Power gain access to the Indian markets from which it is hopeful of increased demand for its fuel cells for a wide range of purposes, from military and industrial applications in India and Asia at large. The US firm is a manufacturer of fuel cells for the military and portable electronic gadgets. The letter of intent, according to NEAH Power, may as well result in its acquisition of the Bangalore based firm.

However, no details were given over the investment transaction. Even so, NEAH Power reiterated that if the merger or acquisition is successful, the resultant entity will be in a position to offer more prospects for growth and expansion of the firm’s product lines and global business. It is also understood that the two firms are as well carrying out due diligence studies in a bid to establish the viability and structure of the entity to be formed.

Chris D’Couto, president and chief executive officer, NEAH Power, said the firm plans to take the synergistic partnership between the two firms to new levels. He reiterated that, other than the fuel cells for electric wheelers, NEAH Power is hopeful of an increase in demand for its fuel cells in India with a presence.

As such, the US firm expects the partnership with Eko vehicles to enable it meet the expected increase in demand. Further to that, D’Couto said NEAH Power was hopeful its micro fuel cells might just as well take over from batteries for most of its users.

NEAH Power Systems Inc, develops renewable energy solutions based fuel cells for the military and portable electronic devices. It uses a unique, patented, silicon-based design for its micro fuel cells that enable higher power densities, lower cost and compact form-factors. The company's micro fuel cell system can run in aerobic and anaerobic modes.

Eko Vehicles Pvt Ltd, founded by Mr. Anil Ananthakrishna, manufactures electric and hybrid bikes, three wheelers, cars, vans, buses, trucks and agricultural equipments using environmentally friendly propulsion systems.

29 Aug 2010.