Fiat Agrees to Sell Parts Unit Marelli to KKR's Calsonic Kansei

  • Transaction values Italian company at 6.2 billion euros
  • Japanese-European merged entity has over $17 billion in sales
Bloomberg’s Tommaso Ebhardt reports on Fiat’s sale.(Source: Bloomberg)
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Fiat Chrysler Automobiles NV agreed to sell its car-parts unit, Magneti Marelli, to KKR & Co.’s Calsonic Kansei in the first major deal for the Italian-American carmaker under new Chief Executive Officer Mike Manley.

The transaction, valued at 6.2 billion euros ($7.1 billion), will create Japan-based Magneti Marelli CK Holdings, according to a statement Monday. Beda Bolzenius, chief executive officer of the acquirer, will lead the combined entity, which will supply components to Fiat Chrysler through a multiyear agreement. The Italian business will remain in Milan, according to a statementBloomberg Terminal Monday.