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Magna to merge Tesma and Magna Steyr

TORONTO - Canadian parts giant Magna International Inc. of Aurora, Ontario, plans to combine its Tesma International Inc. and Magna Steyr Group units next year to cut costs and increase powertrain systems sales.

The combination will create Magna Steyr Inc., with Tesma shareholders owning 52.5 percent of the company.

Tesma supplies engines, transmissions and fuel system components. Magna Steyr builds four-wheel-drive systems and assembles vehicles for DaimlerChrysler AG in Europe.

The new company will have combined sales of about $2 billion.

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