M&A

17 November, 2009

UPDATE 1-Autoliv says to buy Delphi assets

* Autoliv to buy North American assets from Delphi

* Assets include steering wheel, airbag and seatbelt units

* Units being acquired seen having sales of $125 mln in 2010

(Adds detail, background)

STOCKHOLM, Nov 17 (Reuters) - World number one seatbelt and airbag maker Autoliv (ALV.N) (ALIVsdb.ST) said on Tuesday it would buy the North American airbag, seatbelt and steering wheel assets of U.S. auto parts maker Delphi for an undisclosed sum. Autoliv said in a statement the assets included Delphi's steering wheel operations in Matamoros, Mexico, as well as its North American airbag and seatbelt assets which would be consolidated into existing Autoliv facilities.

"This transition is expected to occur during the next several months," the company said.

Autoliv did not disclose the financial details of the deal, but said it expected sales at the units, which have the likes of General Motors [GM.UL], Ford (F.N), and Navistar (NAV.N) as customers, to total $125 million next year.

The transaction was expected to close by Dec. 31, it said.

Delphi, which emerged from a four-year bankruptcy in October, has narrowed its once sprawling array of products, cutting thousands of jobs and divesting a string of businesses. (Editing by Dan Lalor)

Source: http://www.reuters.com