In a US$6.5 billion deal, Japan-based CK Holdings Co., Ltd, a holding company of Calsonic Kansei Corporation has completed its previously announced acquisition of Italy-based automotive supplier Magneti Marelli S.p.A. from current owners Fiat Chrysler Automobiles N.V.

The new combined entity will be renamed as Magneti Marelli CK Holdings Co. Ltd. With the transaction completed, it becomes the world’s 7th largest, independent global automotive supplier.

CK holdings had first announced its plans to purchase Magneti Marelli in October 2018. While the complete transaction stands at a value of US$6.5 billion, the new entity, Magneti Marelli CK Holdings Co. Ltd. has combined revenues of about 14.6 billion euros.

FCA said it would pay 1.30 euros for each common share on May 30.

"The board of Italian American carmaker FCA also approved distributing a previously announced extraordinary cash dividend of 2 billion euros."

The business will be led by Beda Bolzenius, current CEO of Calsonic Kansei, while Ermanno Ferrari, the CEO of Magneti Marelli, will join the Magneti Marelli CK Holdings board.

The company will operate out of its 170 facilities and R&D centres spread across Europe, Japan, the Americas and the Asia-Pacific.

Beda Bolzenius, CEO of Calsonic Kansei and Magneti Marelli said, “We are delighted that we formally come together as one company. In the last few months, our two companies have spent a lot of time getting to know each other and our respective businesses and I’m very confident and excited about our future potential as one firm. As part of this, our relationship with FCA remains an important one, as we continue to serve them as part of our multi-year supply agreement. In being able to serve our customers as one firm, integration is a key priority – both culturally and operationally. We will coordinate our efforts to focus on creating a globally-diversified tier-one supplier, which our customers and employees can be proud to be part of.”

With a wide portfolio of products and services, Magneti Marelli develops AMT gearboxes, engine control units for diesel engines and exhaust systems and also co-develops fuel systems for two-wheeler manufacturers.