TURIN - Magneti Marelli will acquire control of Automotive Lighting GmbH, the 50-50 joint venture it formed in April 1999 with Robert Bosch.
Automotive Lighting, which merged the lighting operations of Marelli and Bosch, is the world's second-largest lighting supplier after Valeo.
Marelli's takeover of Automotive Lighting won't involve an exchange of cash. The partners will incorporate Marelli's Seima group into the joint venture, giving the Italian company a majority holding. Magneti Marelli is a unit of Fiat SpA.
Magneti Marelli will raise its stake in Automotive Lighting to 75 percent and Bosch will reduce its stake to 25 percent. Bosch will continue to give technical support to Automotive Lighting for another year and then exit from the sector.
Bosch's remaining 25 percent stake could be sold to Magneti Marelli or retained as a pure investment.
Automotive Lighting will continue to be based in Innsbruck, Austria. The company has plants
and research and development centers in Germany, Italy, UK, Poland, Czech Republic, Russia, Turkey, USA, Mexico, Brazil and Malaysia.
The joint venture employs 6,140 and had revenues of A740 million in 1999.
With the integration of Seima, which Marelli bought last December for A160 million, Automotive Lighting revenues are expected to be more than A1 billion this year.
Seima, based in Udine, Italy, makes rear lamps. It has plants in France, Spain, Russia and Mexico, and employs 1,860. Seima reported A220 million in revenues in 1999.