German car-parts maker Getrag in talks for €1 bn stake sale

German car-parts maker Getrag, one of the world's largest suppliers of automatic transmission systems, is in advanced talks to sell a stake in the company to a North American parts maker, for around €1 billion ($1.11 billion).

Citing two sources familiar with the matter, Bloomberg said that the family behind Getrag is exploring a stake sale or initial public offering amid rising consolidation among auto suppliers.

Magna International Inc has expressed interest, as well as some Chinese competitors, the report said and add that Ohio-based powertrain components supplier Dana Holding Corp would consider a bid if the entire company is put up for sale.

Reuters yesterday reported that a North American company had approached Getrag with an offer of about $1.11 billion for the stake and Magna International is seen as a frontrunner in the race.

Founded in 1935 by Hermann Hagenmeyer, Getrag is the world's largest supplier of automatic transmission systems for passenger cars and commercial vehicles.

The Untergruppenbach-based company manufactures transmission products and solutions for markets in Europe, Asia and North America to automotive companies like BMW, Daimler, Ferrari, Mitsubishi, Porsche, Qoros, Renault, Volkswagen Group and Volvo.

It has 23 global production and development sites, employs around 13,250 people and annual turnover of over €3 billion.