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Calsonic Kansei lines up USD 5.9 billion for Magneti takeover – Report

Auto News - Published on Tue, 25 Sep 2018

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Reuters quoted four sources familiar with the matter as saying that Calsonic Kansei has lined up around 5 billion euros (USD 5.9 billion) in financing from Japanese banks to help fund its proposed acquisition of Fiat Chrysler's Magneti Marelli unit. The Japanese car parts maker, which US private equity fund KKR bought from Nissan and other shareholders in 2016, has been in talks with Fiat Chrysler for months and has asked the likes of Nomura and Mizuho to finance its bid. Calsonic has made an initial proposal of EUR 5.8 billion for Magneti Marelli, two of the sources said, but the final price could be revised after the Japanese group conducts in-depth due diligence on the Italian rival.

Calsonic aims to take full control of Magneti Marelli and create a group worth that generates about USD 18.8 billion in annual revenue that will be later listed on the stock market, the sources said.

But FCA is seeking more than USD 7 billion for the diversified parts maker, which specializes in lighting, powertrain and electronics, they added.

No binding agreement has been reached at this stage and the deal could still fall apart, the sources said.

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Posted By : Joykumar Irom on Tue, 25 Sep 2018
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