Indian car wiring supplier Motherson Sumi Systems Ltd. is in early discussions with German wiring and cable maker Leoni AG about a potential merger deal that could be worth more than €1 billion, Reuters reported Dec. 13, citing sources close to the matter.
Motherson Sumi is a joint venture between Samvardhana Motherson Group and Sumitomo Electric Industries Ltd.-owned Sumitomo Wiring Systems Ltd. It reportedly operates 180 facilities across 37 countries and supplies major automakers including Daimler AG and Volkswagen AG.
Motherson Sumi has acquired a number of companies in recent years, the most recent of which is French interior systems provider Reydel Automotive France SAS, according to the report.
One of the sources told Reuters that Motherson Sumi is seeking a significant acquisition in Europe, with an investment bank assisting in the search.
Leoni and Motherson Sumi did not immediately respond to requests for comment by S&P Global Market Intelligence.
The report comes a month after Leoni unveiled a strategic program to raise the company's profitability and cash flow following slow sales in the third quarter.