French group Faurecia to launch tender offer for Clarion acquisition

An illustration shows a car dashboard with a giant screen on the side of the Faurecia booth during the 2019 CES in Las Vegas, Nevada, U.S. January 8, 2019. REUTERS/Steve Marcus

PARIS (Reuters) - French car parts company Faurecia said it would launch on Jan. 30 its tender offer to buy out Japanese car navigation system maker Clarion as part of its previously announced $1.3 billion (£989.12 million) takeover of Clarion from Hitachi.

The Clarion takeover is the latest in a flurry of deals among car components businesses, which are trying to keep up with a shift by car makers into new technologies such as autonomous driving, connected cars and electric vehicles.

Clarion shareholders will be offered a chance to tender their shares by February 28, 2019 at a price of 2,500 yen per Clarion share, Faurecia said on Tuesday.

Faurecia added that Japanese company Hitachi had committed to tender all of its shares, representing 63.8 percent of the share capital of Clarion, to Faurecia’s offer.

Reporting by Sudip Kar-Gupta; Editing by Muralikumar Anantharaman