A gap of about one billion euros in the valuation of Magneti Marelli autoparts maker have put exclusive talks between FCA and US private equity giant KKR on hold.
Italian-US automaker FCA actually is expecting offers around 6 billion euros for its subsidiay while KKR is said to have offered “just” about 5 billions. So this is why FCA’s chairman John Elkann and ceo Mike Manley might decide to go on with the alternative option of a spin-off of the company and its listing on a Stock Exchange or to evaluate other bids coming from other private equity firms or from KKR itself (see here Bloomberg).
KKR is said to be willing to buy Magneti Marelli thorugh its Japan portfolio company Calsonic Kansei Corp, which it acquired last year from Nissan Motor Co and other shareholders for a 4.5 billion dollars price. The two companies have similar size and might give birth to a world leader in the autopart sector with about 18 billion dollars in revenues.
However other private equity firms are close to the dossier. Bain Capital and Apollo Global Management were said to be studying the deal (see here a previous post by BeBeez), but also Cinven and Carlyle are said to have a significant interest, sources told BeBeez. However valuations by the funds for Magneti Marelli are all said to be around 5 billion euros, not more.
