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Tuesday, January 28, 2020

=Delphi Technologies PLC (DLPH) to be acquired by BorgWarner (BWA) for $3.3 billion

Shares of Delphi Technologies PLC soared 61% Tuesday, after BorgWarner Inc. said it’s acquiring the company in all-stock deal with an enterprise value of about $3.3 billion.

BorgWarner (BWA), which makes parts for combustion, hybrid and electric vehicles, said Delphi shareholders will receive 0.4534 shares of its stock for each Delphi DLPH, +61.33%  share owned, equal to $17.39 a share in cash. That represents a 77% premium over Delphi stock’s closing price Monday. Upon closing, BorgWarner shareholders will own about 84% of the combined company, with Delphi shareholders owning the remaining 16%.

The deal is expected to strengthen BorgWarner’s power electronics business. Delphi specializes in propulsion technologies to make cars cleaner and more efficient. BorgWarner had sales of $10.17 billion in fiscal 2019, while Delphi had sales of $4.36 billion.

The deal is expected to be “meaningfully accretive” to adjusted EPS in the second full year after closing, which is expected to happen in the second half.

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