Vince Galifi, CFO and Don Walker, CEO of Magna International Inc. addresses talk during the 2013 annual general meeting of the company in Toronto May 10 2013. Magna, North America’s biggest auto-parts maker, is in talks to sell its car-interior business to Spain’s Grupo Antolin, people familiar with the matter said.Fernando Morales/The Globe and Mail
Magna International Inc., North America's biggest auto-parts maker, is in talks to sell its car-interior business to Spain's Grupo Antolin, people familiar with the matter said.
An agreement may be reached as early as April, though talks could still be delayed or fall apart, said the people, who asked not to be identified because negotiations are private. Antolin may buy all or part of the business, which generates about $3-billion (U.S.) in annual sales and could attract interest from other buyers, the people said.
Representatives for Antolin and Magna declined to comment.
The car-parts industry is under increasing pressure to consolidate as auto makers look to work with partners that can produce more complex bundles of components to save costs. That requires suppliers with a range of offerings and broad geographical presence as auto-makers expand with new factories in markets such as China, Mexico and Brazil.
For closely held Grupo Antolin, the deal would bolster chairman Ernesto Antolin's goal of becoming the world's largest supplier of auto interiors, while Magna could free up resources for its operations in electronics, powertrain and batteries.
Antolin, which is based in Burgos, Spain, manufactures car-roof interior systems, doors, seats and lighting components and had sales of €2.73-billion ($3.75-billion Canadian) in 2013 and 14,800 employees in 25 countries, according to its website.
Magna's interiors unit supplies components including cockpit systems and door panels to global auto makers ranging from Toyota Motor Corp. to Tesla Motors Inc., according to its website.