Huayu Automotive Systems Co. Ltd. (SHA: 600741) agreed to buy the other half of its Chinese joint venture from partner Visteon Corp. (NYSE: VC), a supplier of interiors systems to automotive manufacturers.
As part of a plan to shift the company’s focus to core businesses, Visteon opted to divest the 50 percent stake it owned in Chinese joint venture Yanfeng Visteon Automotive Trim Systems Co. Ltd., to Huayu for about $1.5 billion.
Separately, Visteon agreed to buy the other half of the automotive electronics portfolio of assets, which operates as a joint venture under Shanghai auto parts maker Yanfeng Visteon Automotive Electronics Co. Ltd., for roughly $70 million.
The transactions are each expected to close before Dec. 31.
Visteon president and CEO Timothy Leuliette noted in a release that both deals are meant to strengthen the global electronics position of the Van Buren Township, Mich.-based company.
Huayu, headquartered in Shanghai, designs and develops various types of spare parts and assemblies for auto manufacturers.
Law firm Skadden Arps Slate Meagher & Flom LLP advised Visteon throughout the sale process. The legal team included partners Frederic Depoortere, Shilpi Gupta, Hal Hicks and Jonathan Stone.