It should be mentioned the deal includes the historical debt of Delphi Technologies, and after finalization, BorgWarner shareholders would own 84 percent of the combined company. Previously known as Automotive Components Group when General Motors was running the show, Delphi Technologies was spun off in 1999. It then went bankrupt in 2005, was bought by GM once again for peanuts, then the shares were sold back to Delphi Automotive in 2011.
The public limited company – now called Aptiv PLC – spun off the powertrain business in 2017 in order to focus on autonomous driving and active safety systems. Turning our attention back to Delphi Technologies, some of its most recent highlights include 48-volt mild hybridization, Dynamic Skip Fire on-demand cylinder deactivation, and high-pressure injectors for GDi engines.
BorgWarner has even more products and serves way more categories. The company’s biggest customers at the time of writing are Ford and Lincoln, the Volkswagen Group, Daimler AG (a.k.a. Mercedes-Benz and Mercedes-AMG), and General Motors. In other words, BorgWarner needs all the expertise that Delphi Technologies has to offer to increase its global market share in the extremely lucrative industry of automotive components.
The last time BorgWarner bought a well-known company is 2015 when Remy International was acquired for $1.2 billion including the assumption of debt. The aftermarket components unit was sold a year later to an investor group for $80 million, with BorgWarner retaining the Delco Remy commercial business and core electrical business.