KKR pays €6.2bn for Fiat’s parts unit
The sale price is more than €1bn higher than analysts’ average valuation for the business
Milan/Hong Kong/New York — Fiat Chrysler Automobiles agreed to sell its car-parts unit, Magneti Marelli, to KKR’s Calsonic Kansei in the first major deal for the Italian-American carmaker under new CEO Mike Manley. The transaction, valued at €6.2bn, will create Japan-based Magneti Marelli Holdings, according to a statement on 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 statement Monday. Shares of Fiat Chrysler advanced as much as 7.2% in Milan after a delayed opening. The stock was up 5.3% to €14.15 at 2.01pm local time. The sale price is more than €1bn higher than analysts’ average valuation for the business, Mediobanca said in a note. The deal, reported by Bloomberg News on Sunday, creates an vehicle-parts maker with more than $17bn in annual revenue and about 65,000 workers from Tokyo to Milan. T...
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