BorgWarner is acquiring Delphi Technologies in an all-stock deal which is expected to close in the second half of 2020.

United States: Automotive parts supplier BorgWarner Inc. agreed to buy UK-based Delphi Technologies PLC which is an automotive parts major in a USD3.3 billion deal. The deal will help strengthen BorgWarner’s existing power electronic product portfolio. BorgWarner Inc. will own about 84 percent of the combined company after the expected closing of the deal. This deal between the two major auto suppliers has been approved by the board of directors of both companies with CEO of BorgWarner to head the combined company, which will be based at BorgWarner's headquarters in Auburn Hills, Michigan.

America based BorgWarner Inc. makes major automotive parts including product offerings such as automatic transmissions, turbochargers, emissions systems and thermostats, among others. BorgWarner Inc. has a global presence across 18 countries with over 60 manufacturing facilities worldwide.

 “This exciting transaction represents the next step in BorgWarner's balanced propulsion strategy, strengthening our position in electrified propulsion as well as our combustion, commercial vehicle and aftermarket businesses," said President and CEO of BorgWarner Inc.

 CEO of Delphi Technologies said, "This is a compelling transaction that we are confident delivers clear benefits to our stakeholders. Delphi Technologies' portfolio is highly complementary to BorgWarner's and together we plan to create a pioneering propulsion technologies company uniquely equipped to serve OEMs and aftermarket customers around the world."

According to TechSci Research, this deal between the two auto-component majors will benefit the new company as they plan to launch flexible propulsion technologies, compatible with hybrid, combustion and electric propulsion system-based automobiles and serve both aftermarket and OEMs. Such flexibility is critical for market growth in an era of experimentation and transition towards electric vehicles. This deal will unite the two suppliers positioning for industry's shift to hybrid and electric vehicles. Since various economies plan to tackle the problem of global greenhouse gases emission by electrification of public fleets, this will result in increased demand for electric vehicles and components in the coming years.

According to recently published report by TechSci Research, “Global Electric Vehicle Components Market By Component (Battery Pack; Electric Motor; Controller; Vehicle Interface Control Module; Others), By Vehicle Type (Electric Passenger Car; Electric Commercial Vehicle, Electric Two-Wheeler, & Electric Three-Wheeler), By End User (OEM; Aftermarket), By Region, Competition, Forecast & Opportunities, 2025”, global electric vehicle components market is projected to grow at CAGR of close to 30% during the forecast period on account of surging sales of electric vehicles on the back of growing awareness about vehicle emission and government subsidies on purchase of these vehicles. As the electric vehicle market continues to expand, replacement demand is expected to increase in the future years. With the rising adoption of electric vehicles, an increasing number of ride hailing companies such as Uber, Didi, Lyft, Ola, etc., are looking into integrating more and more electric vehicles into their respective vehicle fleets.

According to TechSci Research report,  North America Electric Passenger Car Market By Vehicle Type (Hatchback, Sedan and SUV), By Technology Type (Battery Electric Vehicle and Plug-in Hybrid Electric Vehicle), By Driving Range, By Country, Competition Forecast & Opportunities, 2013-2023”, North America electric passenger car market stood at over $ 10.3 billion in 2017 and is projected to grow at a CAGR of more than 18% to surpass $ 31.5 billion by 2023 on account of growing demand for cleaner automobiles. Moreover, governments in major North American economies are providing subsidies on electric vehicles in order to encourage their adoption, which is consequently pushing demand for electric passenger cars across the region. Additionally, technological advancements in automotive industry coupled with continuous expansion in region’s charging infrastructure is further anticipated to fuel North America electric passenger car market over the next five years.