The transaction, valued at 6.2 billion euros, will create Japan-based Magneti Marelli CK Holdings, according to a statement monday 22 october. www.bloomberg.com
Fiat Chrysler Automobiles NV agreed to sell its car-parts unit, Magneti Marelli, to KKR & Co.’s Calsonic Kansei in the first major deal for the Italian-American carmaker under new Chief Executive Officer Mike Manley.
The transaction, valued at 6.2 billion euros ($7.1 billion), will create Japan-based Magneti Marelli CK Holdings, according to a statement Monday. Beda Bolzenius, chief executive officer of the acquirer, will lead the combined entity, which will supply components to Fiat Chrysler through a multiyear agreement. The Italian business will remain in Milan, according to a Calsonic Kansei and Magneti Marelli to Create a Leading Independent Automotive Components Supplier” Monday.
Shares of Fiat Chrysler advanced as much as 7.2 percent in Milan after a delayed opening. The stock was up 5.3 percent to 14.15 euros at 2:01 p.m. local time. The sale price is more than 1 billion euros higher than analysts’ average valuation for the business, Mediobanca said in a note.