Cyprus Mail
BusinessInternationalTech & Science

Auto parts supplier Aptiv to acquire 85 per cent of Intercable unit in EV tech push

tesla

Auto parts supplier Aptiv Plc (APTV.N) said on Tuesday it would acquire a majority stake in a unit of Italy’ Intercable for 595 million euros ($605.71 million), allowing the US company access to technology used in electric vehicles (EVs).

Aptiv will own an 85 per cent stake in the unit, Intercable Automotive Solutions, which manufactures high-voltage busbars that carry more electrical power than traditional cables. It has manufacturing facilities in Europe and Asia.

“Intercable Automotive Solutions is an excellent strategic fit with Aptiv’s Signal & Power Solutions segment,” Aptiv Chief Executive Officer Kevin Clark said in a statement.

Auto parts suppliers are increasingly investing in electric and battery technology to cater to the EV market, which could be worth $5 trillion over the next decade.

Aptiv, which counts Tesla Inc (TSLA.O) and General Motors Co (GM.N) as customers, in January announced a multi-billion-dollar deal for software developer Wind River to capitalize on the shift to software-oriented vehicles and diversify its revenue stream.

The deal also comes amid automakers’ effort to replicate the success of Tesla’s electric vehicles, as they replace 12-volt wiring systems with much higher voltage cables.

Aptiv’s deal for Intercable Automotive is expected to close before the end of this year, following which the company will operate as a stand-alone business unit.

The transaction is expected to add to Aptiv’s earnings next year. Shares of the company were down 2.7 per cent amid a broader fall in the market after data showed monthly U.S consumer prices unexpectedly rose in August.

Goldman Sachs & Co LLC served as financial adviser for the deal to Aptiv while Clifford Chance was the company’s legal adviser.

Related Posts

UK energy support schemes’ cost halved as mild winter tames prices

Reuters News Service

Construction costs and high demand push house prices upwards

Kyriacos Nicolaou

Like Musk, nickel-rich Indonesia has high electric vehicle ambitions

Reuters News Service

Cyprus Business Now

Kyriacos Nicolaou

Paphos chamber of commerce pleased with economic performance in 2022

Kyriacos Nicolaou

Doing too little is still bigger risk for ECB than doing too much: Holzmann

Reuters News Service