Fiat Chrysler Automobiles is to sell its automotive components business, Magneti Marelli S.p.A., to CK Holdings Co., Ltd., a holding company of Calsonic Kansei Corporation, a leading Japanese automotive component supplier. Following the closing of the transaction, CK Holdings will be renamed as Magneti Marelli CK Holdings. The combined businesses of Calsonic Kansei and Magneti Marelli will create the world’s 7th largest global independent automotive components supplier based on total revenues.
The agreement represents a transaction value of €6.2 billion ($AUD10 billion) and the transaction is expected to close in the first half of 2019, subject to regulatory approvals and other customary closing conditions.
The combination of the two businesses will create one of the leading global independent automotive components suppliers, with combined revenues of EUR 15.2 billion ($AUD24.6 billion) and is, the companies say, a decisive step towards both companies’ strategic ambition to become a leading globally-diversified tier-one supplier.
The new entity will operate out of nearly 200 facilities and R&D centres across Europe, Japan, the Americas, and Asia Pacific.
The combined company will be led by Beda Bolzenius, currently CEO of Calsonic Kansei, based in Japan. Ermanno Ferrari, CEO of Magneti Marelli, will join the Magneti Marelli CK Holdings board.