Fiat considering selling Magneti Marelli

The Fiat Chrysler Automobiles, or FCA is considering selling Magneti Marelli, one of the worlds largest OEM automotive parts manufacturer. According to insider sources, at least two U.S. private equity funds are looking to team up with industry players and submit joint bids for Magneti Marelli, which supplies all major carmakers in Europe, the Americas and Asia. According to valuation agencies, the group is currently values at over three billion US dollars.

Although the FCA is currently debt laden, the official spokesperson still maintains that the OEM parts giant is in fact not for sale currently but could be sold if they reconsidered their plans to do the same. FCA currently has its hands full with its large plans for Ferrari’s future. A sale of the unit, which employs more than 38,000 and is present in 19 countries, could help FCA pay off some debt and fund a 48 billion euro investment plan.

According to investors who have been interested in the Magneti Marelli brand have been trying to get in touch with Sergio Marichonne for a while but since the FCA honcho has been focusing all his energy to get GM to merge with them, their appeals have fallen on deaf ears. That said, they do expect Marichonne to get back to them soon now since the GM deal seems to be a no show. The investors have also mentioned how Magneti Marelli if bought will be split into smaller units and devided according to certain competencies. Magneti Marelli had revenue of 6.5 billion euros last year and makes components for lighting, engines, electronics, suspension and exhausts, among other items.