It’s been reported that private equity firm KKR are in talks to add Fiat Chrysler’s parts business to their portfolio of automotive companies. The buyout firm would likely combine the operation with their Japanese parts maker Calsonic Kansei, bought by KKR last year from Nissan and other shareholders for about USD $4.5bn.
A verdict on Magneti Marelli will be one of the first major decisions FCA CEO Mike Manley will make after having taken over last month from the late Sergio Marchionne.
FCA have fielded interest for Marelli—which may be valued at as much as €6bn including debt—from potential buyers including an unnamed Asian parts supplier and buyout firms Apollo Global Management and Bain Capital, according to people familiar with the matter. FCA have been saying they’ll stick with their plan to spin off the business while pledging to evaluate bona fide proposals for other options.
