Engineering giant BorgWarner is to acquire components manufacturer Delphi Technologies in a takeover deal worth $3.3 billion (£2.52 billion).

The move had a profound impact on both companies’ share prices immediately following the announcement earlier this month; shares in Delphi soared 61.95 percent to $15.86 on the NYSE immediately following the announcement, but BorgWarner shares slumped 7.76% to $35.38, as investors seemed nervous about the company investing in a company best known for diesel technology.

Speaking to investment journal Barrons, Research Analyst David Leiker commented: “For BorgWarner shareholders, we understand a view that this doesn’t reduce exposure to internal combustion engines.” Delphi Technologies’ stock tends to trade at a lower price to its rivals, given the company’s exposure to now-unfashionable fuel system parts.

Delphi Technologies was formed in 2017 when the original company split into two parts. Aptiv PLC has the automotive electronics and software side of the business, while Delphi Technologies has powertrain and aftermarket components.

Frederic Warner, CEO of BorgWarner, explained what drew the company to Delphi: “We were impressed by the electronics know-how overall and the scale…and the talent, the capabilities of the electronics. Delphi Technologies is really ahead of the curve. I think they’re a year more advanced than others.”

In 2019, Delphi Technologies generated $4.36 billion of net sales, while BorgWarner $10.17 billion.

IAAF Awards: Winners announced

Annual conference and Awards takes place online

Read More

North and South branch openings for GSF Car Parts

Bournemouth and Warrington join newly-rebranded parts chain

Read More

National Tyres acquired by Halfords for £62m

604-branch chain to become part of retail giant in a deal totalling £81m after capital expenditure and integration costs

Read More

New van fleet for Marathon

Warehouse distributor renews fleet with new Citroen Dispatch vans

Read More

Schaeffler to buy ‘green steel‘ from Swedish start-up

H2 Green Steel to supply OE producer

Read More

Go to comments

Your email address will not be published. Required fields are marked *