BorgWarner has agreed to acquire Delphi Technologies in an all-stock transaction.
The acquisition will strengthen BorgWarner’s power electronics products, capabilities and scale.
BorgWarner said in a statement that combining with Delphi Technologies is consistent with its own evolution towards the propulsion market of the future and would enable BorgWarner to maintain flexibility across combustion, hybrid, and electric propulsion (C-H-E).
BorgWarner added that the $3.3 billion deal is expected to close in the second half of this year.
Under the terms of the agreement, which has been approved by the boards of directors of both companies, Delphi Technologies stockholders would receive a fixed exchange ratio of 0.4534 shares of BorgWarner common stock per Delphi Technologies share.
Upon closing of the transaction, current BorgWarner stockholders are expected to own approximately 84 per cent of the combined company, while current Delphi Technologies stockholders are expected to own approximately 16 per cent.
“This exciting transaction represents the next step in BorgWarner’s balanced propulsion strategy, strengthening our position in electrified propulsion as well as our combustion, commercial vehicle and aftermarket businesses,” said Frédéric Lissalde, president and CEO of BorgWarner.
Richard F. Dauch, CEO of Delphi Technologies added: “Delphi Technologies’ portfolio is highly complementary to BorgWarner’s, and together we plan to create a pioneering propulsion technologies company uniquely equipped to serve OEMs and aftermarket customers around the world.”