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Date: 2019-05-04
Headlines
The joint business will function under the name Magneti Marelli CK Holdings Co. Ltd.
It would be the seventh largest automotive supplier in the world on revenue basis
Reports confirm that Fiat Chrysler Automobiles, an Italian and American multinational auto corporation, has completed the sale of its automotive parts business Magneti Marelli to Calsonic Kansei, a Japanese automotive company.
CK Holdings, part of Calsonic Kansei, has purchased the auto components firm for an amount of $6.5 billion, lesser than the earlier price tag because of the unit's latest financial position.
Seemingly, last year, FCA had approved to sell Magneti Marelli to CK holdings for a total amount of $6.9 billion but the sale price needed to be adjusted on the basis of estimated financial position of Magneti as of the closing date.
Sources familiar with the matter informed that the joint business will function under the name Magneti Marelli CK Holdings Co. Ltd. In addition, Ermanno Ferrari, Magneti Marelli CEO, will soon join the board of the new company.
According to CEO of Calsonic Kansei, Beda Bolzenius, and Magneti Marelli, both the companies have formally joined and become one company. The firms will coordinate their efforts to focus on building a diversified global tier-one provider and be able to serve the customers as one company.
Sources said this transaction has obtained all the essential anti-trust and regulatory approvals as well as combines the two businesses for an accumulative revenue of $16.32 billion. With this acquisition, based on total revenues, Magneti Marelli CK Holdings would be the seventh largest automotive supplier in the world.
The company will function out of 170 facilities and R&D centers spread across Japan, the Asia Pacific, Europe, and the Americas.
For the uninitiated, Fiat Chrysler Automobiles manufactures, engineers and designs passenger cars, components, LCVs, and production system for customers globally and operates 46 R&D centers as well as 102 manufacturing facilities. The group was formed in October 2014 by merging Chrysler and Fiat into a holding company.
Source Credit: https://auto.ndtv.com/news/fca-completes-sale-of-magneti-marelli-to-ck-holdings-6-5-billion-2032089