Leoni’s sale of automotive cables business to Thai manufacturer falls through
14 Dec 2022
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Amongst other products, the unit supplies elastomeric cables to automotive manufacturers
Nuremberg, Germany – Leoni AG’s agreement to sell its automotive cable solutions (BG AM) business to Thailand-based Stark Corp. has fallen through following an ‘unexpected demand’ by the Bangkok-based manufacturer of wires & cables.
In a statement 13 Dec, Leoni said that all conditions for the closing of the sale and purchase agreement had been “timely fulfilled” and that the closing had been scheduled to occur “shortly.”
“However, the buyer Stark has today unexpectedly demanded very significant amendments to the purchase agreement,” said the statement.
The German manufacturer said it had to refuse to agree with the new terms, despite its willingness to compromise.
The BG AM sale, announced in May, was part of Leoni’s plans to streamline its businesses and to narrow focus on its wiring systems business.
The unit operates 10 production locations, across seven countries and employs 3,300 people.
It generated sales of €1.3 billion in the 2021 fiscal year and is valued at €560 million, according to Leoni.
In 2019, Leoni announced the decision to streamline its structure with a plan to divest its Wire & Cable Solutions (WCS) business.
The German cables specialist intends to focus more on its other core business Wiring Systems Division (WSD) which specialises in energy and data systems.
Amongst other products, the automotive cables unit supplies TPE-based and elastomeric cables to car manufacturers.
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