Canada's Linamar buys French auto parts maker Montupet

Thu Oct 15, 2015 10:19am EDT
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* Deal boosts Canadian firm's exposure to car makers

* Gives Linamar access to aluminium castings technology

* Montupet shares suspended after exclusive Reuters report (Adds announcement and details of transaction)

By Pamela Barbaglia and Arno Schuetze

LONDON/FRANKFURT, Oct 15 (Reuters) - Canadian auto parts maker Linamar Corp said on Thursday it will buy France's Montupet for 771 million euros ($915 million) in a deal that will boost its exposure to manufacturers like Volkswagen and Peugeot.

The deal, which gives Linamar access to Montupet's complex aluminium castings technology, shows that the scandal over Volkswagen cheating pollution emissions tests has not eroded confidence among industry players seeking to expand in Europe.

Montupet's shares were suspended from trading on Thursday after Reuters exclusively reported that Linamar was working on the deal.

Linamar ranked 90th by sales among world automotive suppliers in 2014, according to Berylls Strategy Advisors.

The industry is dominated by German firms such as Continental, Robert Bosch and ZF Friedrichshafen, which bought U.S. firm TRW Automotive Holdings in 2014.   Continued...