Topic: How To Invest

Spinoffs & Takeovers Hotline – Friday, February 7, 2020

Article Excerpt

BORGWARNER INC., $33.57, symbol BWA on New York, is a global supplier of auto parts. It has manufacturing facilities at 67 locations in 19 countries and employs more than 30,000 people worldwide. On January 28, BorgWarner announced that it would acquire Delphi Technologies plc (symbol DLPH on New York) in an all-stock deal that values the auto parts supplier at $3.3 billion. For every share of Delphi Technologies stock, shareholders will receive 0.4534 shares of BorgWarner. Once the deal is completed in the second half of 2020, BorgWarner will own 84% of the combined company. Delphi shareholders will hold the rest. At $3.3 billion, this acquisition is in fact BorgWarner’s biggest to date. The previous high was $950 million, which it paid to acquire Remy International in 2015. Delphi was spun-off in December 2017 from Delphi Automotive, which was renamed Aptiv PLC (symbol APTV on New York). Aptiv develops safety systems and autonomous vehicle software. In the quarter ended September 30, 2019, BorgWarner’s revenues…