On September 20, local time, parts supplier Magna International announced that its powertrain division has signed an agreement to sell its hydraulics and control unit to Hanon Systems, a Korean energy management system supplier, for $1.23 billion.
Magna's global hydraulics and control business focuses on designing, manufacturing, supplying mechanical and electronic pumps, electronic cooling fans and other components. In 2017, the division's sales reached $1.4 billion. Magna said the division is in North America. About 4,200 employees in 10 operations centers in Europe and Asia will transition to Hanon.
Magna said in the statement, 'After the transaction, Magna Powertrain will continue to focus on powertrain development, providing transmission systems and transmission systems including electric versions.'
The deal still requires several regulatory approvals, including antitrust approvals, and is expected to be completed in the first quarter of 2019. Hanon said the deal is the largest deal for Korean companies to acquire auto parts suppliers overseas. I hope to improve the lineup of electric vehicle products.