Magna, Chongqing Xingqiaorui Automotive to form joint venture

Transaction is expected to close in late 2015 or early 2016. PHOTO: MAGNA INTERNATIONAL

SHANGHAI, China — Magna International Inc. and Chongqing Xingqiaorui have agreed to form a strategic joint venture in China to supply body and chassis components to Chinese market.

Under the terms of the agreement, Cosma International, Magna’s body and chassis operating unit, will hold a 53% stake, while Xingqiaorui will hold the remaining 47%.

The transaction is expected to close in late 2015 or early 2016, subject to regulatory approvals.

Xingqiaorui, a Tier 1 supplier of automotive body-in-white components and a key supplier to Changan Ford, brings its three China manufacturing facilities (two in Chongqing and one in Hangzhou) to the deal. Magna is adding its new Chongqing manufacturing facility.