DLPH - First Look: BorgWarner's $3.3 Billion Purchase of Delphi Technologies
U.S. auto-parts giant BorgWarner (NYSE: BWA) has agreed to buy its U.K.-based rival, Delphi Technologies (NYSE: DLPH), in an all-stock deal that puts Delphi's enterprise value at $3.3 billion. The move comes as BorgWarner seeks to expand its offerings for makers of hybrid and electric vehicles.
For auto investors looking to profit from the trend toward electrified vehicles, this is a noteworthy deal. Here's what we know.
It's a simple all-stock deal. Delphi Technologies' shareholders will receive 0.4534 shares of BorgWarner stock for each Delphi share they own. Once that's completed, current Delphi shareholders will own about 16% of the combined company.