Magna buys Getrag for 1.9 billion USD

Transmission giant Magna has purchased 100 per cent of specialist builder Getrag for USD 1.9 billion. This is just the initial announcement but it is believed that the purchase will help Magna access new technology and give Getrag access to more finances.

Commenting on the acquisition, Don Walker, Magna's chief executive officer, said, "As part of our ongoing product portfolio review, we have identified the expansion of our powertrain business as a strategic priority.  Getrag is an excellent fit with this strategy and is a technology leader in a product area that we believe is well-positioned to benefit from industry trends that are driving increased vehicle fuel-efficiency and reduced emissions.”

 “Getrag's joint venture relationships also provide significant growth potential in China, the world's largest automotive market and the fastest growing market for DCTs.  Lastly, Getrag has a highly capable and experienced workforce, including deep powertrain engineering expertise," Walker added.

The transaction is expected to close near the end of 2015, subject to a number of conditions including obtaining all necessary regulatory approvals.

Getrag, known for their manual gearboxes, produces transmissions for BMW, Daimler, Renault and Volvo. It has approximately 13,500 employees and operates 13 manufacturing and 10 engineering centres in nine countries in Europe, Asia and North America.