Mitsui to take up stake in GA’s US business

Japanese firm Mitsui is acquiring up to 30% stake in Spanish Gestamp Automoción, one of the world's largest manufacturers of automotive components, North and South American operations.

GA's Americas Companies currently have a total of 15 plants in USA, Mexico, Brazil and Argentina. Subject to regulatory approval by relevant authorities, Mitsui will initially acquire newly issued shares of GA's Americas Companies through a third party allocation of newly issued shares for a 15% stake and also provide convertible loans, for a total amount of investments and loans of approximately EUR300 million. After the conversion, Mitsui will ultimately be holding up to 30% shares of GA's Americas Companies.

GA manufactures automotive components including body-in-white, chassis and mechanisms for automotive manufacturers primarily in Europe and the Americas. GA has grown along with automotive manufacturers' global business expansion, and with 98 production plants (including plants under construction), recently GA has become one of the world's largest global automotive parts manufacturers in terms of sales. Furthermore, GA has been contributing to automotive manufacture's efforts for fuel efficiency and safety performance through hot stamping technology, expected to be adopted by a wide range of automotive manufacturers in Europe and the US.

The global automotive industry is recovering from the impact of the Lehman Shock: with major automotive manufacturers's large scale investments, the automotive market in four countries in the Americas that GA's Americas Companies run businesses (US, Mexico, Brazil, and Argentina) are envisaged to grow in the medium to long term, with total number of automotive production expected to increase to over 20 million in 2016 from 15 million in 2011, with a compound annual growth rate of approximately 6%.

(IMA)


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