The leading auto parts supplier BorgWarner Inc. and Delphi Technologies PLC announced that the companies have amended certain terms of the definitive transaction agreement they originally entered into in January, 2020.
- Under the terms of the amendment, BorgWarner consents to Delphi Technologies recent draw down of its revolver. The amended transaction agreement also provides for new closing conditions requiring that, at the time of the transaction closing, the total amount of Delphi Technologies outstanding revolver borrowings do not exceed $225 million, and net of its cash balances, do not exceed $115 million, and its net debt-to- adjusted EBITDA ratio does not exceed a specified threshold.
- As part of resolving the dispute, the parties have also agreed to a revised exchange ratio pursuant to which Delphi Technologies shareholders will receive 0.4307 shares of BorgWarner common stock for each Delphi Technologies share.
- Earlier in January 2020, BorgWarner Inc. has agreed to acquire London based Delphi Technologies for $3.3 billion. The acquisition of Delphi Technologies would strengthen BorgWarners power electronics products, capabilities, and scale. The deal helps BorgWarners propulsion market to maintain flexibility across combustion, hybrid, and electric propulsion (C-H-E).
The other prominent news by BorgWarner is featured below.
May 2019: BorgWarner announced a joint venture with a battery module and pack supplier Romeo Power Technology. After this JV, the battery packs of Romeo Power Technology will energize BorgWarners existing product portfolio for hybrid and electric vehicles. The new JV will be split into 60:40 with BorgWarner and Romeo Power Technology, respectively. The addition of battery packs after the JV will energize BorgWarners existing product portfolio for hybrid and electric vehicles that includes electric motors, onboard battery chargers power electronics, high-voltage battery heaters and eAxle iDMs.
February 2019: BorgWarner has announced the acquisition of two Oregon-based businesses Rinehart Motion Systems LLC and AM Racing Inc., through newly formed company Cascadia Motion LLC. The newly formed company will retain an entrepreneurial culture and explore the wide variety of electric and hybrid propulsion solutions for niche and emerging applications.
BorgWarner is a Michigan based global leader in clean and efficient solutions for combustion, hybrid, and electric vehicles. The company supplies its products to major global automakers across different regions of the world with its best-in-class EGR system. The company is primarily known for its powertrain products. At present, the company has manufacturing and technical facilities in around 67 locations in about 19 countries of the world, and the company employs nearly 30,000 people worldwide.