Fiat said to near sale of auto-parts unit to KKR’s Calsonic

By BLOOMBERG

MILAN • Fiat Chrysler Automobiles NV is nearing a deal to sell its high-tech car-parts unit, Magneti Marelli, to Calsonic Kansei after the Japanese firm raised its bid, according to people with knowledge of the talks.

Calsonic, a car-parts maker owned by private equity firm KKR & Co Inc, and Fiat have reached a tentative agreement on price and may announce an accord as soon as this month, said the people, who asked not to be identified as the discussions are confidential.

Fiat and KKR are negotiating a valuation of more than €5.5 billion (RM26.15 billion) including debt, they said.

The transaction could exclude small parts of Marelli’s business, such as the unit that makes plastic dashboards and bumpers, the people said.

Fiat was seeking bids that value all of Marelli at €6 billion or more, people familiar with the matter said last month. No final decisions have been made on the price or the timing of a deal, and talks could still fall apart if the two sides fail to agree on the remaining details, the people said.

Japanese companies have announced more than US$200 billion (RM830 billion) of acquisitions this year, a 60% increase from the same period in 2017, according to data compiled by Bloomberg. The deal volume has already reached the highest annual tally in more than a decade, the data show.

A representative for Fiat declined to comment, as did KKR. Fiat shares closed 1.1% higher in Milan on Tuesday. The shares were down 1.5% to €14.74 at 10:29am in Milan yesterday.