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Canadian automotive parts manufacturer ABC Technologies has agreed to acquire British-based TI Fluid Systems for ￡1.039 billion ($1.32 billion) in an all-cash transaction.?
The deal, announced on November 29, 2024, values TI Fluid Systems at 200 pence per share, marking a 54.5% premium over its 90-day average share price prior to ABC’s initial approach in September.
After rejecting offers of 165p and 176p per share in September, followed by bids of 188p and 198p in October, TI Fluid signaled its willingness to recommend a 200p per share proposal.?
The final agreement values TI Fluid Systems at approximately ￡1.83 billion when factoring in the company’s debts.
The board of TI Fluid Systems has unanimously recommended that shareholders approve the deal, with a vote expected in the first quarter of 2025. If approved, the acquisition is expected to close shortly thereafter, pending regulatory clearance.
ABC Technologies believes the acquisition will enhance its global presence and diversify its offerings in the competitive automotive sector.
This acquisition comes amid a wave of consolidation in the automotive industry this year. Hyundai Motor Group with its subsidiaries Hyundai Mobis and Kia, completed a majority acquisition of Motional for $923 million, marking it as the largest disclosed transaction in the global automotive sector during Q2 2024.?
With EV sales stagnating due to lower demand in Europe, getting this deal done with ABC Technologies could help turn TI Fluid into a more resilient and competitive player in the global automotive landscape.
