Canadian-Austrian auto parts maker Magna International said on Thursday it will acquire German transmissions specialist Getrag for €1.75 billion, or $1.91 billion, plus €700 million in debt and pension liabilities.
The acquisition, which followed weeks of rumors that a deal was in the works, would provide family-owned Getrag with the necessary resources to invest in electric car technology, said its chief executive, Mihir Kotecha.
“Electric mobility will shape the industry. This requires high investments by automakers and suppliers,” Mr. Kotecha said. He added that large, financially strong suppliers like Magna needed to expand their global presence.