In the global automotive manufacturing space, acquisitions are no longer just about increasing size. They are strategic moves aimed at gaining advanced technology, strengthening market position, and preparing for the shift toward electric vehicles (EVs).
A strong example of this strategy is Samvardhana Motherson International Limited (SAMIL)’s proposed acquisition of Autoelectric, the global wiring harness business of Nexans autoelectric GmbH and Elektrokontact GmbH.
This transaction highlights how leading auto component manufacturers are positioning themselves for the future of mobility.
Strengthening Technology for the EV Era
The automotive industry is rapidly moving away from traditional internal combustion engines toward hybrid and fully electric vehicles. Developing advanced EV components internally can take years. Strategic acquisitions help companies move faster.
Autoelectric brings deep expertise in:
High-voltage wiring harnesses used in electric and hybrid vehicles
Low-voltage systems for conventional and next-generation vehicles
Highly automated production processes backed by a global R&D team of over 800 engineers
With this acquisition, SAMIL aims to accelerate innovation across multiple powertrains and develop next-generation wiring solutions for both passenger and commercial vehicles.
Expanding Global Presence and Scale
For a global auto component leader like Motherson, scale and geographic reach are critical. This acquisition provides instant access to key automotive markets.
Key highlights include:
22 manufacturing facilities across 11 countries, including Germany, the US, Mexico, China, and Eastern Europe
Long-standing relationships with premium OEMs such as BMW, Mercedes-Benz, Porsche, Audi, Volkswagen, and Daimler Truck
Creation of a globally scalable platform for Motherson’s wiring harness business
This significantly strengthens SAMIL’s position as a preferred global supplier to top automotive brands.
Deal Structure and Financial Impact
Large automotive acquisitions involve complex structures to manage risk and ensure transparency.
Enterprise value: EUR 207 million (cash and debt-free basis)
The transaction is expected to be cash EPS accretive, meaning it should positively impact earnings per share
The acquisition involves multiple share and asset purchase agreements to transfer ownership of subsidiaries and select real estate assets
Guarantees are provided by both sides, with Motherson’s subsidiary backing the buyer and Nexans S.A. guaranteeing the seller’s obligations
Such structuring ensures stability and smooth execution of the deal.
Regulatory and Workforce Approvals
Given the size and global nature of the acquisition, regulatory approvals are essential. The deal is subject to:
Merger control clearance from the European Commission
Regulatory approvals in Brazil and the United States, including CFIUS
Mandatory consultations with works councils and employee representatives, a standard requirement for European industrial operations
These steps ensure compliance with competition laws and labor regulations.