Exclusive: Canada's Linamar in talks to buy French auto-parts maker Montupet - sources

Thu Oct 15, 2015 10:46am EDT
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By Pamela Barbaglia and Arno Schuetze

LONDON/FRANKFURT (Reuters) - Canadian auto parts manufacturer Linamar Corp (LNR.TO: Quote) is in talks to buy French peer Montupet MNTP.PA in a deal that values the company at roughly 800 million euros ($914.96 million), two sources familiar with the matter said on Wednesday.

Montupet is working with U.S. investment bank Jefferies to negotiate a deal, the sources said, cautioning that no transaction was certain and talks could still fall through.

Linamar and Jefferies declined to comment.

Montupet, the supplier of aluminum products to Peugeot (PEUP.PA: Quote) and Volkswagen (VOWG_p.DE: Quote), was not immediately available for comment, but its shares were suspended from trading in Paris on Thursday at the company's own request, exchange Euronext said in a statement.

If the deal goes ahead, it would be the latest transaction carried out by a Canadian firm in Europe after Magna International Inc bought Germany's car parts maker Getrag for 1.75 billion euros in July.

It would also show that the scandal over Volkswagen cheating pollution emissions tests has not eroded confidence among industry players seeking to expand in Europe.

Montupet said in September that it had not been affected by the problems faced by Volkswagen, since it supplies Audi-brand V6 cylinder heads to Volkswagen, which are not linked to antipollution standards.

Based in Clichy, on the outskirts of Paris, Montupet serves a number of international carmakers including Renault (RENA.PA: Quote), BMW (BMWG.DE: Quote), General Motors (GM.N: Quote) and Ford (F.N: Quote).   Continued...

Linamar Corp. Chief Executive Linda Hasenfratz addresses the auto parts manufacturer's annual meeting of shareholders in Guelph, approximately 75 km (46 miles) west of Toronto, May 17, 2006.       REUTERS/J.P. Moczulski