FCA confirms sale of its Magneti Marelli car parts unit for $6.5bn

By Sean Galea-Pace
The automotive giants, Fiat Chrysler Automobiles (FCA), has finalised the sale of its car parts unit Magneti Marelli to Calsonic Kansei for $6.5bn, acco...

The automotive giants, Fiat Chrysler Automobiles (FCA), has finalised the sale of its car parts unit Magneti Marelli to Calsonic Kansei for $6.5bn, according to Reuters.

The company agreed to sell Magneti Marelli last year to CK Holdings for €6.2bn in a bid to establish the seventh-largest independent car parts supplier.

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On Thursday (2 May), FCA confirmed that the price had been adjusted based on Magneti Marelli’s estimated financial position as of the closing date.

In addition, the FCA board agreed to distribute a previously announced cash dividend of €2bn. It is anticipated that FCA will pay €1.30 for each common share on 30 May, with Magneti Marelli set to remain a key supplier.

The news follows the firm's decision to partner with Google and Samsung to improve vehicle connectivity. FCA is hoping to have all its vehicles connected to facilitate a range of features from music to autonomous driving by 2022.

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