AP NEWS

BorgWarner to buy rival auto parts supplier Delphi for $3.3B

January 28, 2020 GMT
FILE - In this Jan. 17, 2019 file photo, Frederic Lissalde, President and CEO, of BorgWarner speaks at the Automotive News World Congress in Detroit. The auto parts supplier BorgWarner is acquiring Delphi Technologies in an all-stock deal, Tuesday, Jan. 28, 2020. Lissalde will lead the combined company, which will be based at BorgWarner's headquarters in Auburn Hills, Mich. (AP Photo/Paul Sancya)
FILE - In this Jan. 17, 2019 file photo, Frederic Lissalde, President and CEO, of BorgWarner speaks at the Automotive News World Congress in Detroit. The auto parts supplier BorgWarner is acquiring Delphi Technologies in an all-stock deal, Tuesday, Jan. 28, 2020. Lissalde will lead the combined company, which will be based at BorgWarner's headquarters in Auburn Hills, Mich. (AP Photo/Paul Sancya)

AUBURN HILLS, Mich. (AP) — Auto parts supplier BorgWarner is acquiring Delphi Technologies in an all-stock deal valued at approximately $3.3 billion, partly to help strengthen its power electronics products.

Delphi Technologies PLC shareholders will receive a fixed exchange ratio of 0.4534 shares of BorgWarner stock for each Delphi Technologies share they own.

BorgWarner Inc. stockholders are expected to own about 84% of the combined company, with Delphi Technologies shareholders owning approximately 16%.

BorgWarner President and CEO Frédéric Lissalde will lead the combined company, which will be based at BorgWarner’s headquarters in Auburn Hills, Michigan.

The transaction is targeted to close in the second half of the year. It still needs approval from Delphi Technologies shareholders.

BorgWarner’s stock fell 7.1% in Tuesday premarket trading, while shares of Delphi Technologies soared 60%.