BorgWarner Bolsters Fast-Charging Capabilities Via This Acquisition In China

BorgWarner Inc BWA has entered into an Equity Transfer Agreement with Hubei Surpass Sun Electric (SSE) to acquire the latter's Electric Vehicle Solution, Smart Grid and Smart Energy businesses.
The transaction has an enterprise value of up to RMB 410 million, RMB 267 million of which will be delivered at or soon after closing.
The remaining RMB 143 million could be paid in contingent payments over approximately two years following the closing.
Related: BorgWarner Shares Gain On Q2 Results, Acquires Rhombus Energy Solutions
SSE's electrification business supplies patented electric vehicle charging solutions to customers in China and more than 70 other countries.
BorgWarner expects SSE's charging and electrification capabilities in China to complement its existing capabilities in Europe and North America.
The transaction is expected to close in the first quarter of FY23.
BorgWarner held $1.4 billion in cash and equivalents as of June 30, 2022.
Price Action: BWA shares are trading lower by 1.96% at $37.00 on the last check Tuesday.