The family that owns German transmission specialist Getrag is in advanced talks to sell a stake in the company to a ‘North American parts maker’ which could be Magna International, a news agency reported.
Citing two sources, Reuters said Getrag, one of the world’s largest suppliers of automatic transmissions, was approached recently by a North American company with an offer of about EUR1bn.
Go deeper with GlobalData
One source said a deal was likely to be announced within two weeks and that Canada’s Magna International was seen as a front-runner in the race though the sources did not say what other companies may be involved.
There were also no details of the size of the stake under consideration or the valuation of the company. The transaction had not yet been finalised and could still not proceed.
Getrag could not be reached for comment while Magna told Reuters it did not comment on speculation.
The news agency noted Getrag’s technology is in high demand as advanced gear shifting is seen as offering automakers opportunities to cut the carbon emissions of their vehicles.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataIn addition, Gerag’s position had become more vulnerable since ZF Friedrichshafen acquired TRW Automotive Holdings in a deal closed last month, creating the world’s second largest automotive supplier by sales.
Getrag started discussing a public listing with investment banks last year. But the recent approach by the North American company triggered a new strategic review, with management exploring options to maximise value, Reuters’ sources have said in the past.
