Magna near deal to acquire German transmission maker Getrag, report says
Magna Global Inc. is nearing an arrangement to purchase Getrag, one of the biggest independent manufacturers of transmissions, individuals with knowledge of the issue said.
Magna, The United States largest auto parts manufacturer, and Germany's Getrag could declare a deal just as this week, stated the individuals, who requested to not be identified as the discussions are private.
The household behind Getrag continues to be investigating a sale or IPO amid interest from other automotive suppliers, folks have said.
Magna would purchase Getrag to include the firm's transmission enterprise to its powertrain systems device, which created nearly $5 billion in sales a year ago, or or around 14% of total income, based on data compiled by Bloomberg.
Magna is currently an important player in transmission instances as well as other systems, said David Tyerman, a Toronto-based analyst with Canaccord Genuity. Getrag will be a significant cost increase for this company, using the probability of enlarging it through more outsourcing from auto makers, he explained.
"They've never had complete transmission capacities, so clearly Getrag would fill that emptiness," mentioned Tyerman.
Getrag, which documented $3.6 billion in revenue for 2013 according to its web site, traces its origins to 1935, when Hermann Hagenmeyer started the transmission manufacturer in south-west Germany.
German transmission competition ZF Friedrichshafen AG is now a firm with about $33-billion (30 billion euros) in yearly sales as a result of its its acquisition this year of TRW Automotive Holdings Corp.
Magna's shares in Canada increased as much as 1.9% to C$72.59 to day, offering the firm a market price of nearly $23.2 billion (C$30 billion).
Representatives for Getrag, centered in Untergruppenbach, Germany, and Aurora, Ontario-based Magna could not be immediately reached for comment.
This report will probably be modernized
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