In a USD 415m stock-and-debt deal, Canada-based multinational automotive supplier Magna International (Aurora, Ontario; www.magnaint.com) plans to acquire Donnelly Corporation (Holland Michigan / USA; www.donnelly.com), one of North America´s leading injection moulders and world´s second largest supplier of automotive mirror systems with annual sales of USD 850m. Subject to regulatory approval, Donnelly is to be merged with Magna´s mirrors division in late September 2002 to create a new market leader, Magna Donnelly, with sales of more than USD 1.2 bn.

Magna and Donnelly complement each other from a geographic, operating and customer perspective, said Magna president and CEO Belinda Stronach. In the words of Donnelly´s chairman and CEO Dwane Baumgardner, they are a “uniquely close cultural fit.” The Donnelly chief said he sees “tremendous growth opportunities” in all product areas including electronics, mirror systems and window systems. Magna is by far the larger company, with 67,000 employees in 174 plants and 43 development centres in 19 countries. Donnelly, which encapsulates glass with injection moulded plastics including PP, PVC, PA, POM and acrylics, employs 6,000 in 14 countries.