Suppliers: Canada’s Linamar to purchase France’s Montupet

#hashtags: #Linamar Corp #Montupet #Linamar #Europe #Volkswagen

Canadian auto parts supplier Linamar Corp recently announced it would acquire French parts maker Montupet in a deal valued at 771 million euros ($915 million), seeking increased exposure to automakers such as VW AG or PSA Peugeot Citroen. The move would have Linamar accessing Montupet’s complex aluminum castings technology, but also highlights how the industry players have not lost their confidence to invest and expand into Europe even as the massive scandal over Volkswagen’s rigged pollution tests rages on. Reuters also reported before the deal was announced on the matter, triggering a Montupet shares trading suspension on Thursday. According to Berylls Strategy Advisors, Linamar is considered the 90th biggest worldwide automotive suppliers by sales, judging by 2014 figures. The supplier industry has been keen to reshape itself and increased acquisition plays have been in order, with the sector dominated by German companies such as Robert Bosch, Continental or ZF Friedrichshafen, with the latter also moving to a major acquisition – US rival TRW Automotive Holdings – back in 2014. The deal’s value is a 15.5 percent premium to Montupet’s share price on October 14 and is the latest acquisition among Canadian firms expanding in Europe following Magna International’s acquisition of German car parts producer Getrag for 1.75 billion euros in July. “Montupet and Linamar complement each other very well combining leading expertise in casting and machining,” commented the deal Montupet’s chairman and CEO Stéphane Magnan. Via Reuters