Last year, we learned that Fiat Chrysler Automotive (FCA) has agreed to sell its car parts unit Magneti Marelli to Japanese company Calsonic Kansei for $6.9 billion, one of the first big deals made by FCA CEO Mike Manley. Now, the sale is complete with Magneti Marelli being sold to Calsonic for $6.5 million, slightly below the initial price tag.

“We are delighted that today we formally come together as one company. In the last few months, our two companies have spent a lot of time getting to know each other and our respective businesses and I’m very confident and excited about our future potential as one firm,” said Calsonic Kansei and Magneti Marelli CEO Beda Bolzenius.

Fiat Chrysler has sold Magneti Marelli to Calsonic for $6.5 billion  image

With Magneti Marelli now owned by Calsonic, the combined business will be operating under the name Magneti Marelli CK Holdings Co., Ltd. Together, they form the 7th largest global independent car parts supplier, based on total revenues, and will operate out of 170 facilities and R&D centers across Europe, Japan, the Americas, and the Asia Pacific.

Despite being sold to Calsonic, Magneti Marelli will continue to supply parts to FCA as part of a multi-year agreement. Furthermore, with the two companies together, expect them to have faster development of future tech which may soon make it way to manufacturers the two companies supply to.

“As part of this, our relationship with FCA remains an important one, as we continue to serve them as part of our multi-year supply agreement. In being able to serve our customers as one firm, integration is a key priority – both culturally and operationally. We will coordinate our efforts to focus on creating a globally-diversified tier-one supplier, which our customers and employees can be proud to be part of,” added Bolzenius.