On January 28, local time, BorgWarner announced that it has acquired Delphi Technology for a total of 3.3 billion US dollars (about 22.89 billion yuan). The transaction is expected to be completed in the second half of 2020, at which time the name Delphi will disappear in the long history, and BorgWarner, which has absorbed the Delphi technology product group, is expected to take the next step in the field of power drive.
The acquisition will take the form of an all-stock transaction. The stock on hand of the shareholders of Delphi Technology will be converted into BorgWarner’s stock at a ratio of 1: 0.4534, which is equivalent to $ 17.39 per share, which is about 77% premium to the closing price of Delphi Technology on the 27th. If the shares are converted into cash, Delphi Technology has an enterprise value of $ 3.3 billion.
After the transaction is completed, the original BorgWarner shareholders will account for 84% of the combined group’s equity, while the existing shareholders of Delphi Technology will own approximately 16% of the shares.
This acquisition has caught some in the industry by surprise, but considering Delphi’s recent development and transformation, the acquisition was not too surprising. As a former hegemon in the auto parts industry, this independent component manufacturer, which had been independent from General Motors of the United States, once overwhelmed Bosch, Continental and other manufacturers. In 2004, Delphi had revenues of 28.7 billion US dollars.