And the sale was worth US$7.1 billion, creating a new mega-supplier in the process.
Fiat Chrysler Automobiles (FCA) has sold its Magneti Marelli supplier division for US$7.1 billion ($10 billion) according to new reports from the United States.
An article published in Reuters says Calsonic Kansei (owned by KKR, a private equity firm in the USA, since 2016) will turn into Magneti Marelli CK Holdings when the deal goes through, becoming the seventh-largest independent automotive supplier in the world in the process.
Magneti Marelli specialises in lighting, electronics, suspension and powertrain technology. It's been around since 1919, and is headquartered in Milan, Italy.
The sale shouldn't come as too much of a surprise, given the late Sergio Marchionne announced Fiat Chrysler was looking for a buyer, or to spin the brand off, while laying out the supplier's future last year.
Apparently he favoured spinning the company off and distributing its shares among FCA shareholders, but was open to a sales offer.
According to Reuters, the sale frees up money for FCA to invest in electrification, as it pushes to get ahead of the emissions curve in Europe.
Fiat Chrysler reportedly favoured selling to another supplier, in an attempt to maintain as many jobs as possible. With that said, it's likely some positions will be lost as KKR seeks to maximise the operating efficiency of its new business.
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