[Aditya]

After its plan for a merger with General Motors failed, Fiat Chrysler Automobiles (FCA) is considering the sale of auto parts maker Magneti Marelli. The company has is reported to have been approached by interested parties. At least two US private equity firms are looking to team up with industry players and submit joint bids for Magneti Marelli, which supplies all major carmakers in Europe, the Americas and Asia.

In June, FCA had spurned an offer by a group that included a US buyout fund valuing the the business at less than $ 2.7 billion. FCA wants at least $ 3 billion for Magneti Marelli.

FCA is debt-laden and could sell the unit either in parts or in entirety. However, it is currently concentrating on the spinning off Ferrari. The process is scheduled to be completed after mid-October. A decision on Magneti Marelli's future will be taken only after that.

Magneti Marelli has presence in 19 countries and employs more than 38,000 people. The company makes components for lighting, engines, electronics, suspensions, exhausts and more.

Source: Reuters

[daywiz]

It would make sense for a consortium of Indian manufacturers like Tata, Mahindra and Maruti to get together and buy out the transmission division, with a particular focus on AMT, if FCA is willing to part with it. Despite being expensive, it could work as an advantage to the indian manufacturers.

[jvk84]

At this point, I think Magneti Marelli could be worth as much as Fiat-sans-Ferrari. If they have the funds, Suzuki or Tata should buy it. In addition to AMT, they get a soup of 2000+ patents in Automotive field (plus numerous other patents )

[Maky]

Originally Posted by Aditya

FCA is debt-laden and could sell the unit either in parts or in entirety. However, it is currently concentrating on the spinning off Ferrari.

Sorry but what do you mean by spinning off? are they wanting to sell Ferrari off? or make it an independent company where it doesn't get funding from Fiat.
I was once told Ferrari is a loss making company and relies on Fiat for survival.

[GTO]

Originally Posted by Maky

Sorry but what do you mean by spinning off? are they wanting to sell Ferrari off? or make it an independent company where it doesn't get funding from Fiat.
I was once told Ferrari is a loss making company and relies on Fiat for survival.

More information on Ferrari's IPO - related news item.

[justin.das]

I think Agnelli family will dilute their share after the Ferrari spin off. Then measures like this will be taken to reduce the outstanding debt. Very sad to see everything going this wrong.

[dark.knight]

I think any company that buys Magneti Marelli will be at an advantage. We're talking of a part making division with upwards of 20 patents in areas like transmissions, exhaust, throttle body, intake manifolds, brake discs & pads etc. Some of the most experienced French & Italian engineers have worked for this company and one can directly gain all of their achievements with the takeover.

While people applaud Germans for technology & innovation & are right in doing so, they excel particularly in design, packaging & marketing, apart from their technical prowess of course. In reality the French & Italians did an equally, if not better job in terms of automobile innovations & developments. The French in general are more skilled in precision engineering while the Italians like to push the limits consistently, in due course all will be forgotten as more than 2-3 dozen huge factories have closed between these 2 countries.

[srishiva]

I don't think any auto company buying it would make any business sense. As a component maker you need to be independent and be able to sell to all the auto companies.

[volkman10]

Fiat Chrysler may sell Magneti Marelli parts unit to Samsung in $3B deal.

Samsung is particularly interested in Magneti Marelli’s lighting, in-car entertainment and telematics business and could consider an acquisition of the whole company.

Vice Chairman Lee Jae Yong, 48, is reshaping Samsung, South Korea’s biggest company, as he takes on more responsibilities once held by his father. He has sold off assets and narrowed the conglomerate’s scope as he seeks to bounce back from a downturn in the smartphone business. A move into automobile components would help decrease Samsung’s reliance on consumer electronics.

Source

[dark.knight]

Though still surprising to many, it was no secret that Samsung Electronics, Korea had made a bid to takeover the famous transmission manufacturing unit of Fiat - Magneti Marelli. Sources speculate that the amount that was mutually agreeable for both was around $3 Billion.

It was reported earlier this year that Samsung was in talks with Fiat Chrysler Automobiles to acquire its automotive parts subsidiary, Magneti Marelli. The company was reportedly interested in Magneti Marelli’s capabilities in telematics, lighting and entertainment. It was suggested that if a deal was made it could be worth around $3 billion. There were good vibes coming from Fiat Chrysler CEO Sergio Marchionne as he said he was not personally opposed to Samsung acquiring Magneti Marelli.

Though this following bit of news seems a bit too early to speculate, its being reported that the deal is being put on pause indefinitely as Samsung deals with the Note 7 explosion crisis which is speculated to cost them up to $5 Billion in all. It may go through as planned, or not at all.. depending on how Samsung sees it or how the board-members want to strategize in terms of stabilizing the yield.

Many may be surprised at why an electronics company would want to foray into automobile transmissions but few know that there is a joint-production-venture between Renault and Samsung in Korea with Samsung owning 20%. Samsung might also want to capitalize on the telematics and lighting divisions of Magneti Marelli. Its also no secret that Chris Bangle, legendary designer and ex-employee of BMW jumped to Samsung in '12 though its unclear if he did any design work there at all.

If another South Korean company were to be clever, it'd surely jump on the acquisition offer of Magneti Marelli. That company would be Hyundai.. a place which can exploit the inventions and licensing of M.M to the fullest. This may however be more unlikely than the Samsung possibility as Hyundai always have had a thing for self-developed tech.

Source :http://www.sammobile.com/2016/10/14/...note-7-crisis/

[desdemona]

AFAI can make out the discussions between Samsung and FCA (Marchionne and Elkann) were more in the nature of a 'strategic JV' between Samsung and MM, given that Samsung was/is keen on amping up their automotive business (displays, telematics, lighting as well as of course ev tech and batteries.) Let us see if discussions resume if and when Samsung's Note7, 'the case of exploding cellphone batteries', is worked-through.

The Samsung heir/scion sits, already, on the board of EXOR, the Agnelli family holding company that owns/controls FCA, CaseNewHolland, Ferrari, The Economist, etc.

This will, it seems, be the way Marchionne will attempt to (a) reduce the net-debt of FCA, promised to be zero, in fact net-cash-positive of 4oddbillion$ by end-2018, to investors while simultaneously (b) retaining at a supplier and IP/r&d level a strong presence in new ev and autonomous driving etc tech, that he has said is, as yet, a complete waste of money if already invested in (loss making) early-models and concepts+marketing etc.

FCA net debt is still at 5.xxbillion$, albeit reducing briskly. They will therefore very much need such a JV or even a sell-off deal to achieve the commited-to-capital-markets end-2018 zero-net-debt position. If the Samsung deal does not happen by then, other large possibilities exist, such as selling the COMAU manufacturing robotics and production-systems firm:

http://www.reuters.com/article/us-fi...-idUSKCN1261A7

Marchionne claims to be in no hurry, though that may be a feint, in order to secure even-better valuations.