7/14/22, 12:09 PM marelli: Motherson closes in on acquisition of auto parts company Marelli - The Economic Times

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Business News › Industry › Auto › Auto Components › Motherson closes in on acquisition of auto parts company Marelli

Motherson closes in on acquisition of auto parts

company Marelli
By Nabeel A Khan, ET Bureau Last Updated: Apr 12, 2022, 12:46 AM IST
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Synopsis
A deal is likely to be announced by the end of May or early June, the people said, asking
not to be named. They also did not reveal any likely financial terms or how the
Motherson Group will fund the deal. The acquisition, if consummated, will propel the
group, India's largest automobile component manufacturer, to be among the global
top-ten in the segment.

Vivek Chaand Sehgal's Motherson

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to acquire Marelli, the Italian auto along with Toll-free number
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components maker owned by private TATA TELESERVICES…
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equity firm KKR, in what would be the

Indian company's biggest acquisition Popular in Auto
to date, people aware of the matter said.

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A deal is likely to be announced by the
end of May or early June, the people said, asking not to be named. They also
did not reveal any likely financial terms or how the Motherson Group will 2. Luxury vehicle sales in India
grew in strong double-digits
fund the deal.

in first half of 2022

The acquisition, if consummated, will propel the group, India's largest

3. Maruti's twin-pronged
automobile component manufacturer, to be among the global top-ten in the strategy to protect, enhance
market share
segment.

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7/14/22, 12:09 PM marelli: Motherson closes in on acquisition of auto parts company Marelli - The Economic Times

Emails to the Motherson Group and Marelli seeking comment didn't elicit any
response till press time Monday.

Marelli had posted revenue of more than $11 billion in 2021, almost the same
as the Motherson Group.

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Acquisitions have contributed significantly to Motherson Group's growth. It
has made 29 acquisitions to date, five of which, including in China, Mexico
and Turkey, since the beginning of the pandemic. It is currently in talks for
2. Waiting time for employer-
sponsored green cards rises
acquiring six more companies, according to the people. The deals are part of its
plans to take the group turnover to $36 billion by 2025.

Marelli was created in 2019, after KKR merged Calsonic Kansei, which it 3. Nothing phone (1) price
leaked ahead of launch;
acquired from Nissan for $7.1 billion in 2017, with Magneti Marelli.

brand teases photography

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In March 2022, the company, with total liabilities of $8.2 billion, went for a 4. Centre allays concerns over
$620.7 bn external debt, says
debt restructuring and settlement. This is not the first time Motherson Group its share only 21%
has put in a bid for a company that is larger than it. Several of the deals were
for financially struggling companies, which it acquired and then turned
around.

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The Motherson Group had a long relationship with Magneti Marelli and
Calsonic Kansei, as it had joint ventures with both to produce suspension,
automotive lighting, and HVAC systems in India.

The Motherson Group has undergone a restructuring and has created verticals
under the wiring business and automotive lighting business. It is also
diversifying into nonautomotive businesses, including aerospace, logistics and
healthcare, from where it aims to generate revenue of $9 billion by 2025. Are you a Kajal Lover? Get it at 20% off on
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Of the six other companies it is in talks with, the auto parts maker is very close
to acquiring a tooling company, the people said. It is also planning to create a
new entity for the polymer business. Most Popular Opinion

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2020.

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