‘Fiat daughter Magneti Marelli worth six billion euro’
FCA (Fiat Chrysler Automobiles) is still mourning after the sudden death of Sergio Marchionne, but the plans of the deceased CEO continue unabated. The group continues to prepare to split off the subdivision Magneti Marelli. According to the Bloomberg press agency, this might generate 6 billion euro.
Branching off divisions
Fiat Chrysler has already branched off many divisions in recent years through a separate stock exchange listing, such as tractor manufacturer, CNH Industrial, and sports car manufacturer, Ferrari. Now also Magneti Marelli will be separated. It is not yet clear whether the company will be listed on the stock exchange.
The FCA says it will also evaluate other ‘bona fide’ proposals. The group would already have rejected a proposal from an Asian industry partner. According to Bloomberg, the investment groups, Bain and Apollo, have shown interest. Marchionne once said that there will be no ipo (initial public offering) if someone puts enough money on the table.
The decision on Magneti Marelli will be one of the first great achievements of Mike Manley, who last week suddenly had to take over as CEO of the Italian-American car manufacturer. Nearly 100 years old, Magneti Marelli makes a wide range of parts, from lights, drive trains to suspensions. This year, the group will realize a turnover of 8,9 billion euro.