Sale to Calsonic Kansei will create the world's seventh largest independent automotive parts supplier, after a $9.2 billion transaction.

Fiat Chrysler (FCA) has completed the sale of it Magneti Marelli parts division to Calsonic Kansei for €5.8 billion ($9.2 billion) in cash.

The sale price was adjusted down from the €6.2 billion ($9.8 billion) figure announced last year, as Magneti Marelli's financial position had changed.

Magneti Marelli produces many automotive components, ranging for lights, powertrain parts, suspension gear and exhaust systems to motorsport pieces.

Thanks to the sale, FCA will pay out a special dividend of €1.30 ($2.05) per ordinary share, equating to around €2 billion ($3.2 billion) in total.

In announcing the closing of the sale, Mike Manley, CEO of Fiat Chrysler, said the automaker would keep Magneti Marelli as a "key supplier".

"This sale also recognises the full strategic value of Magneti Marelli, improving our financial position, delivering value to our shareholders and allowing us to enhance our focus on our core product portfolio," Manley said in a prepared statement.

The newly combined company, to be known as Magneti Marelli CK Holdings, will be lead by current Calsonic CEO Beda Bolzenius and headquartered in Japan.

Ermanno Ferrari, the outgoing CEO of Magneti Marelli, will join the merged company's board.

Calsonic Kansei is wholly owned by private equity firm Kohlberg Kravis Roberts, which bought a controlling stake in the firm from Nissan in 2016.

The sale of Magneti Marelli realises the long-held ambition of former FCA CEO Sergio Marchionne to offload the division to help pay off debt and fund future vehicle development programs.