Canadian automotive supplier giant Magna International has agreed a deal to buy German transmission maker Getrag, in a deal worth $1.9bn.
The deal is part of a concerted effort by Magna to boost its powertrain division, which brings in $3bn annually from complete vehicle assembly and another $3bn from tooling and engineering for OEMs, out of $36.6bn annual turnover.
Getrag is particularly known for its dual-clutch transmissions, but crucially the firm has significant partnership deals in place with manufacturers such as Ford, Jiangling and Dongfeng as well as supplying systems to BMW, Daimler, Renault and others.
Magna CEO Don Walker said, “Getrag is a technology leader in a product area that we believe is well positioned to benefit from industry trends that are driving increased vehicle fuel efficiency and reduced emissions. Getrag’s joint-venture relationships also provide significant growth potential in China, the world’s largest automotive market and the fastest growing market for DCTs.”
Getrag CEO Mihir Kotecha added, “We join forces with a reliable, experienced and well-performing global company. This move will bring both sides extraordinary benefits.”
Magna’s 133,000 employees across 29 countries will be bolstered by Stuttgart-based Getrag’s 13,500 employees from sites in nine countries across Europe, Asia and North America. The deal is expected to close by the end of 2015, subject to conditions and regulatory approval.
July 21 2015