23 Oct 2018_campuscad
Japanese automotive company Calsonic Kansei is buying the Italian Magneti Marelli for $7.1 billion owned by Fiat Chrysler.
Calsonic Kansei is specialized in Cockpit modules, IP panels, Air conditioners; HVAC units, compressors etc will take over the unit and form 7th largest independent automotive part supplier in the world.
Calsonic is owned by US private equity firm KKR.
This is first deal after the death of long time boss of FCA Sergio Marchionne in July 2018.
Magneti Marelli operates in 19 countries with 86 manufacturing plant and 43000 employees.
The money may be used to develop the new hybrid and fully electric vehicles by Fiat Chrysler.
All the competitors from Luxury vehicles including the Aston Martin, BMW, Audi are launching the fully electric vehicles by 2021.
Calsonic accumulated the funds from Japanese banks to acquire the Magneti Marelli which is paying 17 times more than other bidders.
FCA also maintained the multiyear contract with Magneti to secure the supply of the parts in coming future.
FCA also owns the robotic specialist and BIW fixture maker Comau and Casting supplier Teksid. Competitors are also interested to buy these units.
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