Tuesday , June 18 2019

Fiat nears deal to sell its auto-parts unit to Calsonic


Fiat Chrysler Automobiles NV is nearing a deal to sell its high-tech car-parts unit, Magneti Marelli, to Calsonic Kansei after the Japanese firm raised its bid, according to people with knowledge of the talks.
Calsonic, an automotive supplier owned by private equity firm KKR & Co., and Fiat have reached a tentative agreement on price and may announce an accord as soon as this month, said the people, who asked not to be identified as the discussions are confidential. Fiat and KKR are negotiating a valuation of more than 5.5 billion euros ($6.3 billion) including debt, they said.
The transaction could exclude small parts of Marelli’s business, such as the unit that makes plastic dashboards and bumpers, the people said. Fiat was seeking bids that value all of Marelli at 6 billion euros or more, people familiar with the matter said last month. No final decisions have been made on the price or the timing of a deal, and talks could still fall apart if the two sides fail to agree on the remaining details, the people said.
Fiat may also keep its led lighting unit, which is related to the development of autonomous driving, Corriere della Sera reported.
“The plastic business relies much on Fiat and has limited profitability,” Gabriele Gambarova, an analyst wrote.

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