A successful acquisition would mark a significant leap for Motherson, positioning the company among the world’s top automotive parts suppliers. (Source: LinkedIn)
Indian auto parts supplier Motherson Group is set to submit an offer to acquire Japan-based Marelli Holdings from US private equity firm KKR & Co. The deal would involve Motherson buying Marelli’s debt at 20 cents to a dollar, while KKR would write off its entire equity, said a banking source.
A majority of Marelli’s lenders, including a consortium of Japanese banks led by Mizuho Bank, are reportedly in favour of the deal. The lenders currently hold the majority of Marelli’s $4.2 billion debt and would need to agree to a debt haircut, according to sources.
Marelli’s performance has improved recently, with its operating income turning positive and its 2024 margin higher than 2023. KKR had written off its $2 billion investment in 2022 but injected $650 million in new capital to support the company’s turnaround.
A successful acquisition would mark a significant leap for Motherson, positioning the company among the world’s top automotive parts suppliers. Marelli is a key supplier to global automakers like Nissan Motor Co. and Stellantis.
