American Axle & Manufacturing and Metaldyne Performance Group have entered into a definitive merger agreement under which AAM will acquire MPG for approximately US$1.6 billion in cash and stock, plus the assumption of US$1.7 billion in net debt.

The two companies will cover powertrain, drivetrain and driveline product lines, as well as a more diversified customer base and end-markets.

‘AAM's transformational acquisition of MPG brings together two complementary Tier 1 organizations to create a company with greater scale and increased diversity across products, customers and end markets,’ said David C Dauch, AAM's chairman and CEO.  "MPG's expertise in complex, highly-engineered powertrain components and its global footprint will be tremendous assets to AAM.’

This story is reprinted from material from American Axlewith editorial changes made by Materials Today. The views expressed in this article do not necessarily represent those of Elsevier.