(Bloomberg) -- Fiat Chrysler Automobiles NV is considering options for its robotics arm Comau, including a potential sale at a value of 1.5 billion euros to 2 billion euros ($1.7 billion to $2.3 billion), people familiar with the matter said. The shares rose the most since July.
The strategic review of the unit is at an early stage and no final decisions have been made, the people said, asking not to be identified because the deliberations are private. A sale process could start early next year, the people said. The business, which makes automated manufacturing systems and industrial robots, could attract bidders from China, another person said.
A sale early next year could be the second major deal under new Chief Executive Officer Mike Manley, who took over just days before the death of his predecessor Sergio Marchionne in July. The company in August agreed to sell its car-parts unit Magneti Marelli for 6.2 billion euros.
A Fiat spokesman declined to comment.
Fiat shares rose 5 percent to close at 14.80 euros in Milan on Monday, the biggest gain since July 5.
Sales of parts operations and other non-core businesses will allow Fiat to focus its resources on building and selling cars at a time when trade tensions, falling car sales in China and clean-air regulations are putting pressure on automakers and their suppliers.
Daimler AG issued its second consecutive profit warning in October and automotive supplier Continental AG said this month that any acceleration in global vehicle production declines would put its revenue forecast at risk. Volvo Cars in September delayed plans for a share sale, saying the timing is “not optimal,” and Aston Martin shares have slumped about 25 percent since its initial public offering.
--With assistance from Gabrielle Coppola and Daniele Lepido.
To contact the reporters on this story: Vinicy Chan in Hong Kong at vchan91@bloomberg.net;Tommaso Ebhardt in Milan at tebhardt@bloomberg.net;Manuel Baigorri in Hong Kong at mbaigorri@bloomberg.net
To contact the editors responsible for this story: Ben Scent at bscent@bloomberg.net, Amy Thomson, Anthony Palazzo
©2018 Bloomberg L.P.
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