The deal, expected to go through in the second half of 2020, values the company at around $3.3bn. According to a Delphi company statement, the move “is consistent with BorgWarner’s evolution towards the propulsion market of the future and would enable BorgWarner to maintain flexibility across combustion, hybrid, and electric propulsion.”
For BorgWarner the deal translates into a strengthening of its position as a propulsion systems leader.
At the close of the deal, the BorgWarner-Delphi Technologies stockholder split would be 84%-16%, respectively. Long-term revenue and cost reduction synergies are also anticipated as a result of the deal.
According to our colleagues at Paperjam, this would be the Bascharage site’s third restructuring since 2015, and the social plan which concerned about 50% of the 500 local positions had been under negotiation since October 2019, expected to be completed in late January.
It adds that management had announced to employees, per the OGBL, “the almost complete disappearance” of the Fuel Injection System (FIS) and Powertrain Products (PTP) divisions, which should move to other sites, whereas the Electronics & Electrification (E&E) division would be spared.