Posted on 09.11.2017 16:13:18In a stunning $1 billion sale, Volkswagen Group AG has acquired the former Bosch Automotive Group for a whopping $1.9 billion.
The deal is the first in a string of major transactions in the auto industry, and follows a spate of major deal announcements in the past month.
The sale, which is expected to close in the fourth quarter, comes as the German automaker has been grappling with mounting debts, amid growing competition from electric-car maker Tesla Inc. and rising demand from Asia.
VW is now poised to become the biggest buyer of the German-owned Bosch brand in history, which includes the VW brand.
The company announced the purchase in a news release Wednesday, and the deal was formally announced in a statement released by the company.
VW will be able to use the assets and expertise of the Bosch group to accelerate its transformation and growth.
The acquisition, which comes as Volkswagen is in the midst of a major restructuring, also comes as it faces significant pressure from the U.S. government and the European Union over its diesel emissions cheating scandal.
The U.K. and other nations are seeking billions of dollars in fines for Volkswagen, which has been caught in a global scandal that has rocked its brand, its brands and its workers.