Cana­dian auto parts gi­ant Magna to buy Ge­trag Group

Cape Breton Post - - CLASSIFIEDS/BUSINESS -

AURORA, Ont. - Magna In­ter­na­tional Inc. says it ex­pects more au­tomak­ers to be­gin out­sourc­ing the pro­duc­tion of automotive trans­mis­sions, and the auto parts maker hopes its C$2.5-bil­lion ac­qui­si­tion of the Ge­trag Group will po­si­tion it to ben­e­fit from that trend. On­tario-based Magna (TSX:MG) an­nounced plans Thurs­day to pur­chase Ge­trag, a Ger­man sup­plier of automotive trans­mis­sions for com­pa­nies such as Ford, BMW, Daim­ler, Re­nault and Volvo. Magna says it will pay 1.75 bil­lion eu­ros for Ge­trag, which has about 13,500 em­ploy­ees and oper­a­tions in nine coun­tries in Europe, Asia and North Amer­ica. The chief ex­ec­u­tive of Magna says the deal is squarely in line with its strat­egy of grow­ing its pow­er­train seg­ment - par­tic­u­larly ex­pand­ing into the pro­duc­tion of trans­mis­sions. “We be­lieve ad­vance­ment in pow­er­train is a key en­abler to achiev­ing the var­i­ous tar­gets set out by gov­ern­ments around the world, to drive im­proved fuel ef­fi­ciency and lower ve­hi­cle emis­sions,” Don Walker told in­vestors and an­a­lysts dur­ing a con­fer­ence call. Magna says the of­fer val­ues Ge­trag at about C$3.45 bil­lion, af­ter ac­count­ing for debt and pen­sion li­a­bil­i­ties that Magna will as­sume.

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