Motherson Proposes Acquisition of Japan’s Marelli

Indian auto parts supplier Motherson Group plans to acquire Japan-based Marelli Holdings from US private equity firm KKR & Co by buying Marelli’s debt at 20 cents to a dollar, with KKR writing off its equity. Most of Marelli’s lenders, including Japanese banks led by Mizuho Bank, support the deal, which requires debt haircut approval. Marelli’s recent financial performance has improved, with positive operating income and higher 2024 margins. KKR had written off $2 billion in 2022 but invested $650 million to aid turnaround. This acquisition would elevate Motherson among top global auto parts suppliers amid industry uncertainties.