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Motherson Sumi in talks with Leoni for merger

Auto News - Published on Mon, 17 Dec 2018

Image Source: Team-BHP
Reuters reported that car wiring maker Motherson Sumi is in early stage talks with German peer Leoni over a possible combination of the two companies. Reuters quoted two people close to the matter as saying the car industry and its suppliers, facing a regulatory crackdown on diesel emissions and a slump in China, have issued a slew of profit warnings in recent months and companies are shaking up their businesses in order to adapt.

Motherson Sumi, which is a joint venture between India's Samvardhana Motherson Group and Japan's Sumitomo Wiring Systems, has snapped up a number of companies in recent years, adding to its range of automotive interior products including rearview mirrors, wiring harnesses and rubber and plastic components.

The company has been scouting for a sizeable acquisition target in Europe with the help of an investment bank. Any deal with Leoni could be worth more than 1 billion euros (USD 1.14 billion) but financing still needs to be worked out, one of the people said.

The exact deal structure was still unclear, and deliberations may not result in any deal at all, the sources added.

An acquisition of Leoni would add to Motherson Sumi's 180 facilities across 37 countries and bolster overseas sales.

Source :

Posted By : Joykumar Irom on Mon, 17 Dec 2018
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