Fiat Chrysler Automobiles (FCA) has announced the sale of automotive component maker Magneti Marelli to Japan’s CK Holdings, a holding company of Calsonic Kansei Corporation, for Euro 6.2 billion. The combined business will operate under the name of Magneti Marelli CK Holdings and will be headquartered in the existing Magnetti Marelli headquarters in Corbetta, Milan.
The combined entity will have revenues of Euro 15.2 billion and will operate out of 200 facilities across Europe, Japan, the Americas and Asia Pacific. Based on the revenues, the company is claimed to be the world’s 7th largest independent automotive supplier. As part of the deal, FCA has also agreed to a multi-year agreement to expand both companies’ model range to sustain Magneti Marelli’s Italian operations.
Beda Bolzenius, CEO of Calsonic Kansei will lead the joint company, while Ermanno Ferrari, CEO of Magneti Marelli, will join the Magneti Marelli CK Holdings board. The deal is expected to be completed in the first half of 2019 subject to regulatory approvals.
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