Fiat Chrysler to sell Magneti Marelli to Calsonic Kansei for €6.2bn
The Italian-American automaker, Fiat Chrysler, will be selling its components subsidiary to Calsonic Kansei’s CK Holdings.
Japan’s Calsonic Kansei, which is owned by the US global investment company KKR & Co, will acquire Lombardy-based Magneto Marelli for €6.2bn (US$7.1bn).
Following the completion of the deal and shareholder approval, CK Holdings will be renamed Magneti Marelli CK Holdings.
“Having carefully examined a range of options to enable Magneti Marelli to express its full potential in the next phase of its development, this combination with Calsonic Kansei has emerged as an ideal opportunity to accelerate Magneti Marelli’s future growth for the benefit of its customers and its outstanding people,” remarked Mike Manley, CEO of Fiat Chrysler.
“The combined business will continue to be among FCA’s most important business partners and we would like to see that relationship grow even further in the future.”
“The transaction also recognises the full strategic value of Magneti Marelli and is another important step in our relentless focus on value creation.”
Through the deal, the seventh largest independent automotive components supplier in the world will be created.
“Our industry has gone through fierce change in recent years and the phase to come will be even more dynamic,” added Beda Bolzenius, CEO of Calsonic Kansei.
“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 Ten.”
“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.”