FCA Nears Deal to Sell Magneti Marelli

Fiat Chrysler Automobiles NV is close to a deal to sell its Magneti Marelli partsmaking unit to Japan’s Calsonic Kansei Corp., sources tell Bloomberg News.

The deal, which may exclude Marelli’s plastic molding business, would value Marelli at more than €5.5 billion ($6.3 billion), including debt, according to Bloomberg. Calsonic was acquired by KKR & Co. two years ago.

Bloomberg’s sources say the sale could be announced by the end of this month. But the news service also cautions that no final decision has been made on price or timing.

Calsonic makes such automotive components as air conditioners, heat exchangers and mufflers. Merging the company with Marelli would create an operation that employs 65,000 people and generates €15 billion ($17 billion) in revenue per year.

Bloomberg notes that, if an outright sale fails to materialize, FCA is likely to spin off Marelli by distributing shares to the carmaker’s existing investors. FCA’s board approved that option in in April.