Last Thursday, Fiat Chrysler Automobiles (FCA) completed its sale of automotive components supplier Magneti Marelli S.p.A. to CK Holdings Co., Ltd., the holding company of Calsonic Kansei Corporation. But FCA has announced it does not plan to cut all ties with its former company.
“We thank Magneti Marelli’s employees for their dedication to providing innovative products while supporting FCA business objectives,” said FCA CEO Mike Manley. “FCA remains committed to Magneti Marelli, with the new company continuing as a key supplier, and I am confident that this transaction secures a strong future for their employees and other stakeholders. This sale also recognizes the full strategic value of Magneti Marelli, improving our financial position, delivering value to our shareholders and allowing us to enhance our focus on our core product portfolio.”
The Japanese automotive supplier, Calsonic Kansei Corporation paid $7.1 billion (USD) for Magneti Marelli. FCA has announced it will sign a multi-year deal with Calsonic Kansei to secure supplies to its Magneti Marelli plants and also to maintain operations in Italy.
According to FCA, it announced that its Board of Directors approved an extraordinary cash distribution to the holders of FCA common shares of €1.30 or ($1.45 USD) per share, corresponding to a total distribution of approximately €2 billion or (about $2.34 billion USD) from the net proceeds of this transaction.