BorgWarner Bolsters Fast-Charging Capabilities Via This Acquisition In China

BorgWarner Bolsters Fast-Charging Capabilities Via This Acquisition In China
  • BorgWarner Inc BWA has entered into an Equity Transfer Agreement with Hubei Surpass Sun Electric (SSE) to acquire the latter's Electric Vehicle Solution, Smart Grid and Smart Energy businesses.
  • The transaction has an enterprise value of up to RMB 410 million, RMB 267 million of which will be delivered at or soon after closing.
  • The remaining RMB 143 million could be paid in contingent payments over approximately two years following the closing.
  • RelatedBorgWarner Shares Gain On Q2 Results, Acquires Rhombus Energy Solutions
  • SSE's electrification business supplies patented electric vehicle charging solutions to customers in China and more than 70 other countries.
  • BorgWarner expects SSE's charging and electrification capabilities in China to complement its existing capabilities in Europe and North America.
  • The transaction is expected to close in the first quarter of FY23.
  • BorgWarner held $1.4 billion in cash and equivalents as of June 30, 2022.
  • Price Action: BWA shares are trading lower by 1.96% at $37.00 on the last check Tuesday.

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