Vancouver, British Columbia's Ballard Power Systems (Nasdaq: BLDP) announced an agreement to sell its automotive fuel cell business to Daimler (NYSE: DAI) and Ford Motor (NYSE: F) just a few days after confirming it was in talks to sell the assets (see Daimler, Ford looking to buy Ballard Power assets).

Under the deal, Stuttgart, Germany-based Daimler and Dearborn, Mich.'s Ford will swap their 34.3 million Ballard shares for the auto assets. Ballard said the shares, valued at $168 million, will be canceled.

"This transaction will enable Ballard to concentrate on growth in fuel cell applications which provide clean energy solutions in commercial markets," said John Sheridan, Ballard's president and CEO.

"It also lowers Ballard's risk profile by addressing the realities of the high cost and long timeline for automotive fuel cell commercialization."

Sheridan said a new private company will be established, with management and funding provided by Daimler and Ford.

Ballard still hold an interest in the auto fuel cell business, which will operate out of its facilities in Vancouver. Daimler will hold a 50.1 percent stake, with Ford owning 30 percent and Ballard getting 19.9 percent.

The two automakers are expected to put a total of $60 million into the business, with Ballard also contributing $60 million.

Ballard said the closing of the deal is subject to regulatory approvals as well as the approval of Daimler's supervisory board and Ballard shareholders.

Ballard, which hasn't posted a profit since 1998, also reported a net loss of $16 million for the third quarter ended Sept. 30, compared with a loss of $17.9 million in the same period a year ago.

The company forecast its 2007 revenue from continuing operations at between $55 million and $65 million, up 30 percent from the previous year.