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Tesla supplier Aptiv to buy 85% stake in Intercable unit in EV tech push

The logo of car manufacturer Tesla is seen at a branch office in Bern, Switzerland October 28, 2020. REUTERS/Arnd Wiegmann

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Sept 13 (Reuters) – Tesla (TSLA.O) supplier Aptiv Plc (APTV.N) said on Tuesday it would acquire a majority stake in a unit of Italy’ Intercable for 595 million euros ($605.71 million), allowing the auto parts company access to technology used in electric vehicles (EVs).

U.S.-based Aptiv will own an 85% stake in the unit, Intercable Automotive Solutions, which manufactures high-voltage busbars that carry more electrical power than traditional cables. It has manufacturing facilities in Europe and Asia.

“Intercable Automotive Solutions is an excellent strategic fit with Aptiv’s Signal & Power Solutions segment,” Aptiv Chief Executive Officer Kevin Clark said in a statement.

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Auto parts suppliers are increasingly investing in electric and battery technology to cater to the EV market, which could be worth $5 trillion over the next decade. read more

Aptiv in January announced a multi-billion-dollar deal for software developer Wind River to capitalize on the shift to software-oriented vehicles and diversify its revenue stream. read more

The deal for Intercable Automotive is expected to close before the end of this year, following which the company will operate as a stand-alone business unit within Aptiv’s Signal & Power Solutions segment.

The transaction is expected to add to Aptiv’s earnings next year.

Goldman Sachs & Co LLC served as financial adviser for the deal to Aptiv while Clifford Chance was the company’s legal adviser.

($1 = 0.9823 euros)

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Reporting by Priyamvada C in Bengaluru; Editing by Vinay Dwivedi

Our Standards: The Thomson Reuters Trust Principles.

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