LONDON/FRANKFURT, Sept 21 (Reuters) - Calsonic Kansei has lined up around 5 billion euros ($5.9 billion) in financing from Japanese banks to fund its proposed acquisition of Fiat Chrysler’s unit Magneti Marelli, four sources familiar with the matter said.
The Japanese car parts maker, which U.S. private equity fund KKR bought from Nissan and other shareholders in 2016, has been in talks with Fiat Chrysler (FCA) for months and has asked the likes of Nomura and Mizuho to finance its bid.
Calsonic has made an initial proposal of 5.8 billion euros for Magneti Marelli, two of the sources said, but the final price could be revised after the Japanese group conducts in-depth due diligence on the Italian rival.
Calsonic aims to take full control of Magneti Marelli and create a group worth around 16 billion euros in revenues that will be later listed on the stock market, the sources said.
But FCA is seeking more than 6 billion euros for the diversified parts maker, which specialises in lighting, powertrain and electronics, they added.
No binding agreement has been reached at this stage and the deal could still fall apart, the sources said.
“They are still far from signing a cheque,” one of the sources said, adding Calsonic was struggling to match FCA’s price expectations.
While there is no exclusive or binding agreement with Calsonic, the Japanese remain the only party in talks with FCA.
Spokesmen for FCA and Nomura declined to comment. Calsonic and Mizuho were not immediately available for comment.
Additional reporting by Stephen Jewkes, writing by Agnieszka Flak Editing by Keith Weir