German car parts maker Getrag in talks to sell stake to N.American group -sources
By Arno Schuetze and Alexander Hübner
FRANKFURT, June 30 (Reuters) - The family that owns German car-parts maker Getrag is in advanced talks to sell a stake in the company to a North American parts maker, two sources familiar with the matter said on Tuesday.
Getrag, one of the world's largest suppliers of automatic transmission systems, was approached recently by a North American company with an offer of about 1 billion euros ($1.11 billion) for the stake, the sources said. The sources declined to be named as the talks are private.
One of the sources said a deal is likely to be announced within two weeks and that Canadian auto-parts maker Magna International Inc is seen as a front-runner in the race.
The sources did not say what other players may be involved.
They also did not provide details on the size of the stake under consideration or the valuation of the company, adding that the transaction has not yet been finalized and could still fall apart.
Getrag could not be reached for comment. Magna said it does not comment on speculation.
Getrag's technology is in high demand as advanced gear-shifting is seen as offering auto manufacturers opportunities to cut the carbon emissions of their vehicles.
The company's position, however, has become more vulnerable since Germany's ZF Friedrichshafen acquired U.S. rival TRW Automotive Holdings in a deal that closed last month, creating the world's second-largest automotive supplier by sales. Continued...