Remy, BorgWarner Merger Takes Another Step
Remy has a presence in 10 countries and 6
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As a subscriber you can listen to articles at work, in the car, or while you work out. Subscribe NowThe proposed acquisition of Pendleton-based Remy International Inc. (Nasdaq: REMY) by BorgWarner Inc. (NYSE: BWA) has cleared an international regulatory hurdle. The Korea Fair Trade Commission has approved the deal, which is valued at $1.2 billion.
The closing is still subject to conditions including Chinese antitrust law approval. Remy, which was founded near the turn of the 20th Century, has said previously it expects the deal to be complete by the end of the year.
The combination of two of the biggest global names in auto component manufacturing is expected to result in around $15 million in cost efficiencies over two years. When the acquisition was announced in July, BorgWarner officials said they expect the merger to result in a combined revenue of $15 billion by 2020.
In addition to the BorgWarner Trophy, which is presented to the winner of the Indianapolis 500 each year and was commissioned by the owner of the company in 1935, BorgWarner has a long history in Indiana. The manufacturer had a major drive train operation in Muncie until it closed it down in 2009 as the recession struck automotive manufacturing hard. The company has also had supplying partnerships with Hoosier companies such as Toyota Motor Manufacturing Inc. in Princeton.