Fiat sells Magneti Marelli for 6.2 billion euros

Fiat sells Magneti Marelli for 6.2 billion euros

October 22, 2018 0 By autotimesnews

The Italian-American concern Fiat gets rid of its branch for the production of automotive components Magneti Marelli.

The holding of assets of Magneti Marelli will be CK Holdings Co., which owns the largest Japanese auto component manufacturer Calsonic Kansei. The amount of the transaction is 6.2 billion euros.

Upon completion of the transaction, the combined company will receive the name Magneti Marelli CK Holdings. According to the parties, the newly created company will become the seventh largest independent manufacturer of automotive components and components with annual revenues of 15.2 billion euros.

Rumors that Fiat Chrysler Automobiles (FCA) will sell Magneti Marelli, went for a long time. FCA is desperately trying to make its business in Europe profitable. Despite the fact that the manufacturer of automotive components does not cause losses, its sale will allow the Italian-American concern to improve the financial position of the European branch. The funds received from the sale of Magneti Marelli will be used to develop the Alfa Romeo, Maserati and Ferrari model lines.