[ad_1]
MILAN / LONDON (Reuters) – Fiat Chrysler (FCHA.MI) (FCA) agreed to sell its Magneti Marelli unit to KKR (KKR.NCalsonic Kansei, two sources close to the case said Sunday, adding that the agreement would be announced Monday.
A screen displays information on the shares of Fiat Chrysler Automobiles NV in the position where it is listed on the New York Stock Exchange (NYSE) in New York, United States, on January 12, 2016. REUTERS / Brendan McDermid
The sale is the first big decision made by FCA's new chief executive, Mike Manley, who took over in July when his longtime boss, Sergio Marchionne, fell ill and later died as a result of a surgery.
The transaction values Magneti Marelli, a diversified parts manufacturer specializing in lighting, powertrain and electronics, at 6.2 billion euros (excluding debt), said the company's biggest powerhouse. one of the sources.
No other details of the agreement were immediately known.
The sealing of the deal was reported for the first time by Bloomberg.
Calsonic Kansei and KKR were not immediately available for comment.
Reuters announced in September that the Japanese auto parts maker has raised about 5 billion euros in financing from Japanese banks to finance its proposed acquisition of Magneti Marelli.
The Japanese auto parts manufacturer, which the US private equity fund KKR bought from Nissan and other shareholders in 2016, has been in talks with FCA for months and made an initial proposal of $ 5.8 billion. for Magneti Marelli, sources said.
The transaction was structured as an outright acquisition by Calsonic to create a global automotive components giant with revenue of around € 16 billion, reduce costs through synergies and expand the customer base of two suppliers, they added.
Marchionne had initiated a process to split the unit and distribute its shares to FCA shareholders early in 2019.
However, at one of his last public appearances in June, Marchionne said that FCA would still be "receptive" to an offer if it "correctly recognizes" the value of Magneti Marelli.
The FCA does not explain the benefits of Magneti Marelli, which is part of the Builder's Components unit, alongside robotics specialist Comau and the Teksid casting company. The unit employs approximately 43,000 people and operates in 19 countries.
Magneti Marelli has often been touted as an acquisition target and FCA has attracted the interest of various rivals and private equity firms over the years, but so far a deal has remained elusive as potential bidders offered too much few or only interested in certain cases.
The FCA has also preferred Calsonic's bid to a private equity bidder, as it limits the risk of unit failure, sources said.
($ 1 = 0.8684 euros)
Additional report by Philip George in Bengaluru; Edited by Kirsten Donovan and Sandra Maler
Source link
