Reuters says Fiat Chrysler Automobiles (FCA) is seriously thinking about selling Magneti Marelli for at least €3 billion.
Reuters says Fiat Chrysler Automobiles is seriously thinking about selling Magneti Marelli for at least €3 billion.
It seems FCA is seriously cash-strapped as after failing to find an automotive company for a partnership, they are now analyzing the prospects of selling some of their most valuable assets. Reuters mentions Sergio Marchionne is thinking about the Italian auto parts maker Magneti Marelli, but apparently he won't give it up for anything less than €3 billion. FCA recently refused an offer from a group including a U.S. buyout fund that offered less than €2.5 billion.
These are just rumors at this point as FCA spokesman Gualberto Ranieri declared Magneti Marelli is not for sale. However, there's no smoke without fire as a source close to the matter cited by Reuters says FCA is indeed interested in either selling the company entirely or just parts of it, with a final decision to be made after Ferrari's IPO set for mid-October.
If sold, the money earned by FCA through this transaction will likely go into paying off some of the debt and also in a huge €48 billion investment plan.
Magneti Marelli has more than 38,000 employees in 19 countries and posted last year €6.5 billion revenues and an operating profit (including unusual items) of €204 million. It appears many of the potential buyers are mostly based in United States and it seems they want to turn Magneti Marelli into a standalone company.