Billionaire Carl Icahn's investment firm, Icahn Enterprises LP (IEP.O), said it would buy the remaining 18 percent of auto parts maker Federal-Mogul Holdings Corp (FDML.O) for $9.25 per share, at a time when a slide in crude prices weighs on its energy business.
Icahn Enterprises, which bought auto parts retailer Pep Boys-Manny Moe & Jack for $1 billion in February, made an initial buyout offer of $7 per share for Federal-Mogul in February and raised it to $8 in June.
The revenue from the energy business, Icahn Enterprises' largest business until 2014, fell 13 percent to about $5.44 billion in 2015 while the automotive business rose 13.2 percent to $7.85 billion.
The offer for Federal-Mogul represents a premium of 86 percent to the stock's close on Feb. 26, the last trading day before Icahn Enterprises made the initial buyout.
Icahn Enterprises will pay about $282 million for the 18 percent stake, according to Reuters calculations.
On completion of the transaction, Federal-Mogul will be an indirect wholly owned subsidiary of Icahn Enterprises.
Federal-Mogul has accepted the offer.
(Reporting by Rishika Sadam in Bengaluru; Editing by Saumyadeb Chakrabarty and Don Sebastian)