Automotive component supplier Motherson Sumi Systems (MSSL, Noida / India; www.motherson.com) plans to buy Visiocorp (Portchester / UK; www.visiocorp.com), which claims to be the world's largest manufacturer of rear view mirrors. The proposed transaction is with the German Federal Cartel Office awaiting approval. Visiocorp said that negotiations are under way and should be completed by the end of February. Motherson is regarded by the Visiocorp supervisory board as an ideal strategic partner – the two companies have been working together for some years and operate an exterior mirror production plant in India in which Motherson holds a 49% stake.

Since the acquisition of Visiocorp (formerly Schefenacker) by hedge funds in 2007, investors have been consistently searching for a strategic partner, with intensifying efforts that culminated in talks beginning with Motherson at the end of 2008. On 2 January 2009, the two supervisory boards gave the go-ahead to begin more detailed negotiations. Visiocorp said that the OEMs it supplies view the takeover positively.

Motherson Sumi has over 20,000 employees and produces a range of plastic parts for the automotive industry, including parts for the interior, engine compartment and exterior, using 450 injection moulding machines. The company posted sales in the 2007/2008 financial year (ending 31 March 2008) equivalent to EUR 370m, around half of Visiocorp's last confirmed sales figure. EBITDA was EUR 40m and net earnings amounted to EUR 32m. Motherson Sumi also works with sunroof manufacturer Webasto.

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Motherson Sumi half year financial report 2008/2009 as a PDF document (119 KB)