Fiat Chrysler Automobiles has completed its sale of the Magneti Marelli unit, Reuters reports.
The Italian-American car manufacturer made the decision to sell off its parts unit to CK Holdings, the parent company of Japan’s Calsonic Kansei, late last year. Initially, the sale was to be valued at 6.2 billion euros ($7.16 billion) but the final price tag was actually 5.8 million euros ($6.5 billion).
According to FCA, the reduced price came as a result of Magneti Marelli’s estimated financial position as of the closing date. FCA’s board has also approved distributing a cash dividend of 2 billion euros ($2.23 billion).
Prior to the untimely death of FCA chief executive Sergio Marchionne, the sale of Magneti Marelli had long been on the cards of the car manufacturer. The sale will see the parts unit renamed Magneti Marelli CK Holdings and it is expected to be the seventh largest automotive component supplier in the industry.
The sale to CK Holdings will see the company operating roughly 200 facilities and research and development centers across Europe, Asia, and the Americas. The new outfit is expected to turn over approximately 15.2 billion euros ($16.99 billion).
When first announcing the deal last year, Calsonic Kansei chief Beda Bolzenius said the move would establish a “competitive automotive supplier.”
“Our industry has gone through fierce change in recent years and the phase to come will be even more dynamic. It is exciting to form a strong platform for Calsonic Kansei and Magneti Marelli to work together and create a competitive automotive supplier which is extremely well placed among the global Top Ten.”