Due to the critical importance of mergers and acquisitions (M&As) in the automotive industry, the KnowledgeAgent Automotive & New Mobility team has compiled a report of the most significant M&As from the fourth quarter of 2023. The report features an overview of five impacting deals and two comprehensive case studies for an in-depth understanding.

Included deals are:

• ADIA (through CYVN Investment) acquires a 13.1% share of NIO, increasing its stake to 20.1%
• Schaeffler takes over 29.9% of Vitesco as a step towards the complete acquisition of Vitesco
• Denso and Mitsubishi collectively invest in Coherent’s SiC semicon business, securing a total stake of 25.0%
• A consortium of investors provides funds in exchange for a 16.0% share in Lotus Technology
• Stellantis takes over 20.0% of Leapmotor. In addition, the two companies will form a joint venture

Three of the five deals are investments in electric vehicle OEMs, underlining the automotive industry’s shift to electrification. One investment is about SiC semiconductors, another key topic of the industry in recent years. Moreover, Schaeffler’s move to acquire Vitesco represents a significant step towards further supplier consolidation.

With this report on automotive M&As in Q4 2023, the KnowledgeAgent Automotive & New Mobility team continues its publications on M&As in the automotive industry. Our experts will provide future editions of M&A compilations with insights into key acquisitions and strategic investments in the market.

The previous automotive M&A reports can be found on our blog page:

1. 08-2022: How car OEMs pursue their strategy
2. 06-2023: How automotive suppliers pursue their strategy

Don’t hesitate to contact us for any kind of research projects in the automotive field.

 

Sources:

• NIO news release, 27/12/2023, NIO Inc. Announces Closing of US$2.2 Billion Strategic Equity Investment from CYVN, https://ir.nio.com/news-releases/news-release-details/nio-inc-announces-closing-us22-billion-strategic-equity/

• NIO news release, 20/06/2023, NIO Inc. Announces Strategic Equity Investment from CYVN Holdings, https://ir.nio.com/news-events/news-releases/news-release-details/nio-inc-announces-strategic-equity-investment-cyvn/

• Schaeffler annual report, 2023

• Vitesco annual report, 2023

• Schaeffler investor presentation, 12/01/2024, Schaeffler AG – Corporate Governance Engagement Call

• Schaeffler news release, 09/01/2024, Schaeffler acquires additional stake of 9 percent in Vitesco, https://www.schaeffler.com/en/media/press-releases/schaeffler-vitesco-20240123/

• Schaeffler news release, 20/12/2023, Schaeffler AG has secured 29.88 percent of Vitesco Technologies Group AG with its public tender offer, https://www.schaeffler.com/en/media/press-releases/schaeffler-vitesco-20231220/

• Manager Magazin, 20/12/2023, Schaeffler darf Vitesco schlucken, https://www.manager-magazin.de/unternehmen/autoindustrie/schaeffler-autozulieferer-kann-vitesco-uebernehmen-a-4bbfe10b-1867-47e3-b46d-7238d0a49ddf

• Schaeffler news release, 27/11/2023, Schaeffler AG and Vitesco Technologies Group AG Sign Business Combination Agreement, https://www.schaeffler.com/en/media/press-releases/schaeffler-vitesco-20231127/

• Süddeutsche Zeitung, 27/11/2023, Schaeffler wird noch mächtiger, https://www.sueddeutsche.de/wirtschaft/schaeffler-vitesco-aktie-uebernahme-1.6310044

• Schaeffler news release, 09/10/2023, Voluntary public tender offer of Schaeffler AG to the shareholders of Vitesco Technologies AG, https://www.schaeffler.com/en/media/press-releases/press-releases-detail.jsp?id=87950400

• Automotive News, 10/10/2023, Denso, Mitsubishi Electric to invest $1 billion in Coherent’s silicon carbide unit that supplies EVs, https://www.autonews.com/suppliers/denso-mitsubishi-invest-1b-silicon-carbide-business-evs

• Coherent news release, 12/04/2023, Coherent’s silicon carbide semiconductor business Completes $1 Billion in Investments from DENSO and Mitsubishi Electric, https://www.coherent.com/news/press-releases/coherents-silicon-carbide-semiconductor-business-completes-1-billion-in-investments-from-denso-and-mitsubishi-electric

• Lotus news release, 23/02/2024, Lotus Technology Celebrates Public Listing On Nasdaq, https://media.lotuscars.com/en/news-articles/lotus-technology-celebrates-public-listing-on-nasdaq.html

• Reuters, 28/11/2023, Lotus Tech secures $870 mln ahead of deal completion with L Catterton SPAC, https://www.reuters.com/markets/deals/lotus-tech-secures-870-mln-ahead-deal-completion-with-l-catterton-spac-2023-11-28/

• PE Insights, 28/11/2023, L Catterton Leads $870m Pre-IPO Funding Round for Lotus Tech, https://pe-insights.com/news/2023/11/28/l-catterton-leads-870m-pre-ipo-funding-round-for-lotus-tech/

• CleanTechnica, 06/02/2023, Lotus Spins Off EV Division in $5.4 Billion SPAC Deal, https://cleantechnica.com/2023/02/06/lotus-spins-off-ev-division-in-5-4-billion-spac-deal/

• Stellantis annual report, 2023

• Leapmotor annual report, 2023

• Leapmotor website, Investor Relations, https://ir.leapmotor.com/en/

• Stellantis news release, 26/10/2023, Stellantis to Become a Strategic Shareholder of Leapmotor with €1.5 Billion Investment and Bolster Leapmotor’s Global Electric Vehicle Business, https://www.stellantis.com/en/news/press-releases/2023/october/stellantis-to-become-a-strategic-shareholder-of-leapmotor-with-1-5-billion-investment-and-bolster-leapmotor-s-global-electric-vehicle-business

• Reuters, 26/10/2023, Stellantis takes $1.6 bln Leapmotor stake to revive China fortunes
  https://www.deutschlandfunkkultur.de/deutsche-jammern-wehleidig-pessimismus-mehr-selbstvertrauen-100.html