Motherson Group in talks to buy Italian component maker Marelli: Reports

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Motherson Group is in advanced stages of talks to buy Italian auto components maker Marellli, The Economics Times reported on Tuesday.

The report did not reveal any likely financial terms or how the Motherson Group will fund the deal. The acquisition, if consummated, will propel the group, India's largest automobile component manufacturer, to be among the global top-ten in the segment.

The deal is likely to be announced by the end of May or early June, the ET report said.

Marelli is owned by private equity firm KKR. It was created in 2019, after KKR merged Calsonic Kansei, which it bought from Nissan for $7.1 billion in 2017. In March 2022, the firm with total liabilities of $8.2 billion went for a debt restructuring and settlement. In 2021, Marelli had posted over $11 billion revenue, almost the same as Motherson Group.

The Motherson Group had a long relationship with Magneti Marelli and Calsonic Kansei, as it had joint ventures with both to produce suspension, automotive lighting, and HVAC systems in India.

According to the ET report, Motherson Group has made around 29 acquisitions in China, Mexico and Turkey since the beginning of the pandemic and it is now in talks with six more firms. The acquisitions have contributed significantly to Motherson Group's growth.