Italian component manufacturer Magneti Marelli has been sold by Fiat-Chrysler (FCA) for EU 6.2bn to a Japanese holdings company.
The new owner is CK Holdings, which is a holding company of component supplier Calsonic Kansei Corporation.
When the deal closes, CK Holdings will be renamed as Magneti Marelli CK Holdings. The companies say that combined businesses of Calsonic Kansei and Magneti Marelli will create the world’s seventh largest global independent automotive components supplier based on total revenues.
FCA has also agreed to a multi-year supply agreement that will further strengthen a ‘mutually beneficial’ relationship for both Magneti Marelli and the Fiat group’s model range.
The combined company will be led by Beda Bolzenius, currently CEO of Calsonic Kansei, based in Japan. Ermanno Ferr
ari, CEO of Magneti Marelli, will join the Magneti Marelli CK Holdings board.
Mike Manley, CEO of FCA, said: “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.”
Beda Bolzenius, CEO of Calsonic Kansei, said: “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.”
Describing the events as ‘transformational’ Ermanno Ferrari, CEO of Magneti Marelli, said: “ 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.”
The transition is expected to complete in the first quarter of 2019, subject to the usual approvals.
Go to comments