May 20, 2020

Calsonic Kansei in talks to acquire Magneti Marelli

Manufacturing
Nissan
Automotive
KKR
2 min
Calsonic Kansei in talks to acquire Magneti Marelli
Japanese automotive parts manufacturer Calsonic Kansei has made an initial proposal of €5.8bn for Fiat Chrysler’s (FCA) Magneti Marelli, Reuters reported
 
The first bid for the hi-tech systems and components designer and manufacturer is short of FCA’s aims for €6bn, with talks having been ongoing “for months”.
 
Calsonic hopes to assume full control of the Italian firm and form a group worth €16bn.
 
Reuters’ sources said Calsonic would seek to list such a group on the stock market should the acquisition be successful.
 
Talks are reportedly far from a conclusion and could still come to nought, particularly given that Calsonic has yet to meet FCA’s price demands.
 
Magneti posted a 2016 turnover of €7.9bn, and currently employs around 43,000 people.
 
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The firm also has an established presence in 20 countries around the world, with 85 production units and 15 research and development centres.
 
Its business areas include, among others, electronic systems, powertrain components, suspension systems, and lighting.
 
Calsonic was bought from Nissan by US investment firm KKR & Co in 2017, and Reuters said that “the parts maker relied on Nissan for 80 percent of its global sales”.
 
While FCA does not publish such specific details of Magneti Marelli’s earnings, the combined entity would nonetheless form a unit less reliant on Calsonic and Magneti’s respective parent companies.

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