Fiat Chrysler completes sale of components maker
MILAN (AP) — Fiat Chrysler Automobiles says it has completed the sale of components maker Magneti Marelli to Japanese supplier Calsonic Kansei, allowing a special dividend to shareholders for the first time in a decade.
The Italian-American carmaker said Thursday that the deal delivered 5.8 billion euros ($6.5 billion) to the balance sheet. The Fiat board also approved an extraordinary cash dividend of 1.3 euros per share, for a total payout of some 2 billion euros.
FCA CEO Mike Manley said the sale “recognizes the full strategic value of Magneti Marelli, improving our financial position, delivering value to our shareholders and allowing us to enhance our focus on our core product portfolio.”
Magneti Marelli would remain a key supplier for the automaker.