Fiat Chrysler Automobiles is selling component supplier business Magneti Marelli.
The €6.2 billion sale to leading Japanese component supplier Calsonic Kansei will create combined revenues of €15.2 billion, making the combined Magneti Marelli CK Holdings the seventh largest global independent components supplier in automotive.
While the deal is still subject to shareholder approval, the new entity will consist of almost 200 factories and research and development hubs across Europe, Japan North and South America, and Asia Pacific.
Calsonic Kansei is a tier-one supplier of exhaust systems, climate control systems, interior components, heat exchanges and compressors, and electronics, while Magneti Marelli also makes powertrain parts like ECU modules and diesel and dual-fuel engines, “Freechoice” automated manual gearboxes, suspension systems, automotive lighting, plastic components and motorsport technology.
The latter employs around 43,000 people in 85 production facilities and 15 R&D centres alone, with sites in 20 countries.
Current Calsonic Kansei chief executive Beda Bolzenius says the buy-up will strengthen what he describes has been a shaky time for the global automotive components and manufacturing sector.
“Our industry has gone through fierce change in recent years and the phase to come will be even more dynamic,” he explains.
“It is exciting to form a strong platform for Calsonic Kansei and Magneti Marelli to work together and create a competitive automotive supplier which is extremely well placed among the global top 10,” Bolzenius says.
“Together, we will benefit from complementary geographic footprints and product lines, while our respective customers will benefit from an increased investment in people, processes and innovative new products.”
Magneti Marelli chief executive Ermanno Ferrari says the merger is “transformational”.
“This is a moment of great opportunity for all our people to be part of a secure, growing and independent company of considerable scale that can look to the future with energy, ambition and confidence,” he says.
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