Magna to buy transmission maker Getrag?
A large deal in the supplier business could be brewing.
Canada-based supplier Magna International is said to be closing in on a bid to acquire transmission maker Getrag.
According to Bloomberg, Magna, North America's largest auto parts supplier, could announce a deal to buy Germany-based Getrag as soon as this week. No price tag has been linked to the potential deal.
Getrag currently builds transmission for OE automakers like BMW, Ferrari, Renault and Volvo. In 2013 Getrag generated $3.6 billion in sales. Magna's powertrains system unit, which would takeover Getrag's transmission business, recorded $5 billion in sales last year.
Although not exactly peanuts, Getrag hasn't been able to match its main rival, ZF, in terms of revenue. Last year ZF, which is also based in Germany, generated $33 billion in revenue, largely due to the company's recent acquisition of TRW Automotive Holdings Corp.
Magna is no stranger to large acquisition bids, but they haven't always worked out. Magna failed to acquire Chrysler in 2007 and missed out again on purchasing the Saturn and Opel brands from General Motors in 2009.