Calsonic buys Fiat Chrysler parts unit

Source: Xinhua | 2018-10-23

Japan’s Calsonic Kansei, owned by US private equity firm KKR, has agreed to buy Fiat Chrysler’s Magneti Marelli for 6.2 billion euros (US$7.1 billion) to form the seventh-largest independent car parts supplier.

The first big deal by FCA’s newly-appointed chief executive Mike Manley, who took over in July after the sudden death of long-time boss Sergio Marchionne, creates a company with revenue of 15.2 billion euros, the companies said.

The new Magneti Marelli CK Holdings is likely to cut costs through synergies and expand its customer base as components makers try to keep up with a shift by carmakers into autonomous driving, connected cars and electric vehicles.

“This combination with Calsonic Kansei has emerged as an ideal opportunity to accelerate Magneti Marelli’s future growth,” Manley said of the FCA unit, which specializes in lighting, powertrain and high-tech electronics.