BorgWarner Completes Tender Offer For 89% Stake in AKASOL


Multinational automotive supplier BorgWarner (BWA) announced that it has completed the tender offer to buy 89.08% of the outstanding shares of AKASOL.

AKASOL designs and manufactures customizable lithium-ion battery systems for buses, commercial, rail, and industrial vehicles, as well as for ships and boats.

The company has paid approximately €648 million from its current cash balances to settle the tender offer. The company expects to provide more details on the acquisition when it reports its second-quarter earnings on August 4.

The acquisition is in line with BorgWarner’s electrification strategy and will strengthen the company’s capabilities in the commercial vehicle and industrial electrification markets. The deal will further enhance BorgWarner’s offerings in the off-highway battery systems business.

BorgWarner CEO Frederic Lissalde said, “We are excited to add AKASOL’s innovative products, capabilities and team to BorgWarner as we advance our plan to grow our electric vehicle businesses to approximately 45% of total revenues by 2030 under Project Charging Forward.”

He further added, “Our companies share a commitment to delivering innovative, environmentally friendly solutions to our global customers, and together, we’ll be even better positioned to do just that.” (See BorgWarner stock analysis on TipRanks)

On June 2, Oppenheimer analyst Noah Kaye reiterated a Buy rating on the stock with a $56 price target. This implies 2.9% upside potential to current levels.

Kaye said, “We note that Hyundai, similar to multiple North American and European OEMs, recently unveiled a dedicated BEV platform (e-GMP) to support design flexibility, standardization and manufacturing competitiveness. We believe this award showcases BWA’s ability to participate in major OEMs’ EV commercialization plans with differentiated solutions.”

The rest of the Street is cautiously optimistic about the stock with a Moderate Buy consensus rating based on 8 Buys, 3 Holds, and 1 Sell. The average analyst price target of $54.58 implies that shares are fully valued at current levels. Shares have increased 38.8% over the past six months.

BorgWarner scores a 4 of 10 from TipRanks’ Smart Score rating system, indicating that the stock is likely to perform in line with market averages.

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