Fiat Chrysler Manley makes his mark with a $ 7 billion deal

Manley said the deal recognized "the full strategic value" of Magneti Marelli, which supplies electronics, automotive lighting and powertrains and employs approximately 43,000 people.

"After carefully examining various options that will allow Magneti Marelli to realize its full potential in the next phase of its development, this merger with Calsonic Kansei proved to be an ideal opportunity to accelerate Magneti Marelli's future growth to the benefit of of its customers and customers. exceptional people, "said Manley in his release. Combined companies will continue to be one of FCA's most important business partners and we want to see this relationship grow further in the future. "

Michelle Krebs, Senior Analyst at Autotrader of Cox Automotive, said the announcement would be a boost for Manley and could be good news for FCA's shareholders, who it says could receive a dividend for the first time since 2014. .

"The sale of Magneti Marelli by Fiat Chrysler reinforces Mike Manley's credit on the street and he has executed the plan to extract value for shareholders in the parts division – and he shoveled it , winning a sale price of more than a billion euros more than anyone And the sale comes at a convenient time with the tightening of the market and rising trade tensions, "said Krebs.

Under the terms of the agreement, the new company will retain its operational headquarters in Milan, Italy, and will be headed by Beda Bolzenius, CEO of Calsonic Kansei, the statement said. The current president of Magneti Marelli, Ermanno Ferrari, will be part of the board of directors of the new company.

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"FCA has also agreed on a multi-year procurement agreement that will further strengthen a mutually beneficial relationship for Magneti Marelli's and FCA's expanding range of models and support Magneti Marelli's Italian business operations, which will further support the growth of the Magneti Marelli portfolio. will position it strongly for future growth and success, "the release said.

Bolzenius noted in the statement that "our industry has undergone profound changes in recent years and the next phase will be even more dynamic, and it is exciting to form a solid platform for Calsonic Kansei and Magneti Marelli to work together and To create a competitive automotive market, a top-notch supplier in the world's top 10. Together, we will benefit from geographic footprints and complementary product lines, while our respective customers will benefit from increased investment in resources. innovative processes and new products. "

The Wall Street Journal had previously announced that New York-based private equity firm KKR had "acquired Calsonic last year from Nissan Motor Co. and other shareholders for about $ 4.5 billion" .

The newspaper, citing unnamed sources at the time, said KKR would create "a giant auto parts capable of cutting costs by eliminating duplication of activities."