Magna Nearing Deal to Purchase Transmissions Maker Gertag
July 16, 2015—On Wednesday, sources said Magna International Inc. is nearing a deal to buy Getrag, one of the largest independent makers of transmissions. The deal could be announced as soon as this week, according to Bloomberg.
Magna would buy Getrag to add the company to its own powertrain systems unit, which generated almost $5 billion in sales last year.
Magna is already a major player in transmission cases and other technologies, Getrag would be a significant boost for that business, with the possibility of expanding it through more outsourcing from automakers, said David Tyerman, a Toronto-based analyst with Canaccord Genuity.
“They have never had full transmission capabilities, so obviously Getrag would fill that void,” said Tyerman, according to Bloomberg.