Fiat mulling sale of Magneti Marelli

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 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