Canada auto parts giant Magna to buy Germany's Getrag

Jul 20, 2015

Canadian auto parts maker Magna International said on Thursday it has reached an agreement to acquire the German-based Getrag Group of Companies, a leading automotive transmission supplier, for 1.75 billion euros ($1.91 billion).

Getrag is a leader in the growing dual-clutch transmissions, or DCTs, market, which is projected to be one of the highest growth segments globally over the next decade, Magna said.

“As part of our ongoing product portfolio review, we have identified the expansion of our powertrain business as a strategic priority. Getrag is an excellent fit with this strategy,” Magna CEO Don Walker said.

“Getrag is a technology leader in a product area that we believe is well-positioned to benefit from industry trends that are driving increased vehicle fuel-efficiency and reduced emissions,” Walker added.

The chief executive also highlighted Getrag’s joint venture relationships with Chinese automobile manufacturers Jiangling and Dongfeng Motor, saying they would “provide significant growth potential in China, the world’s largest automotive market and the fastest growing market for DCTs.”

The transaction, which is subject to regulatory approvals, is expected to close at around year’s end, Magna said.

Source: Latin American Herald Tribune