Calsonic Kansei readies US$5.9 billion fund to bid for Magneti Marelli and its six plants in Mexico

Calsonic Kansei has gathered around US$5.9 billion in financing to fund its proposed acquisition of FCA’s unit Magneti Marelli, Reuters reported last week, citing as sources four people familiar with the matter.

Japanese automotive supplier, which is now owned by U.S. fund KKR, has been in talks with Fiat Chrysler Automobiles for months and has asked Japanese banks Nomura and Mizuho to finance its bid.

“Calsonic has made an initial proposal of 5.8 billion euros 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,” says the report.

Magneti Marelli operates six manufacturing plants in four Mexican cities. Two facilities located in Ciudad Juarez, Chihuahua, are dedicated to the production of lighting products, while a production site in Saltillo, Coahuila, builds suspension systems.

A facility in Toluca, State of Mexico, builds both lighting products and exhaust systems. Another two plants in Tepotzotlan, State of Mexico, are each dedicated to the manufacture of lighting components and electronics such as mechatronics, instrument clusters, telematics and satellite navigation.

KKR acquired Calsonic Kansei from Nissan in 2016 for US$1.87 billion. The deal included five production sites in Mexico. Three facilities in Aguascalientes dedicated to Air-Conditioning Systems, Heat Exchange Systems, Exhaust Systems, Meters, Plastic Components, Instrument Panels and Wiring Harness Components.

The agreement also included a production unit in Durango that manufactures Heater Units, Air-Conditioning System Parts and Radiators, and a plant in Mexico City that creates Mufflers (Silencers).

MexicoNow

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– FCA plans to spin-off its Magneti Marielli subsidiary