MILAN -- Fiat Chrysler Automobiles has completed the sale of car parts unit Magneti Marelli to Calsonic Kansei for 5.8 billion euros ($6.5 billion), slightly below the initial price tag due to the unit's changed financial position.
Fiat Chrysler last year agreed to sell Magneti Marelli to CK Holdings -- the parent of Japan's Calsonic Kansei and a vehicle of U.S. investment firm KKR -- for 6.2 billion euros to form the world's seventh-largest independent car parts supplier.
FCA said on Thursday that the price had been adjusted based on Magneti Marelli's estimated financial position as of the closing date.
"As part of this [deal], our relationship with FCA remains an important one, as we continue to serve them as part of our multi-year supply agreement," Calsonic Kansei and Magneti Marelli CEO Beda Bolzenius said in a statement. "In being able to serve our customers as one firm, integration is a key priority -- both culturally and operationally."
The combined business will operate under the name Magneti Marelli CK Holdings Co., Ltd.
FCA's board also approved distributing a previously announced extraordinary cash dividend to shareholders of 2 billion euros ($2.2 billion)
Magneti Marelli and Calsonic Kansei rank No. 28 and No. 29, respectively, on the Automotive News list of the top 100 global suppliers with worldwide sales to automakers of $9.2 billion and $9.1 billion, respectively, in 2017.