Magna International Inc announced today that it has completed its acquisition of the Getrag Group of Companies, one of the world’s leading independent suppliers of automotive transmissions.

The Canadian auto components manufacturer bagged the transmission maker Getrag for a whopping $1.9 billion (Rs 12,000 crore). This latest acquisition will make Magna a major transmission competitor to ZF Friedrichshafen, Japan's Aisin and several other smaller transmission suppliers.

Getrag’s established product line complements Magna Powertrain’s expertise in engineering and manufacturing and provides new opportunities for growth, the company said in a press statement. In particular, Getrag is a leader in the market for dual-clutch transmissions (DCTs), a segment which is expected to experience high growth globally over the next decade, it added.

“Expanding our business to provide complete powertrain solutions has been a strategic priority for us,” said Jake Hirsch, Magna Powertrain president. “We believe that Getrag is an excellent fit in terms of product, technology, footprint, customers and people and look forward to working together to continue building on their history of innovation.”

Getrag offers a range of transmission systems including manual, automated-manual, dual-clutch, hybrid and other advanced systems. Beyond enhancing Magna’s powertrain systems capabilities the combined product portfolio will enhance vertical integration opportunities.

“We welcome Getrag and its approximately 14,000 dedicated employees to the Magna family of companies,” said Magna CEO Don Walker. “With the completion of this acquisition, we continue to demonstrate our focus on a refined portfolio of strategic automotive product lines.”

Commenting on the deal Getrag’s CEO Mihir Kotecha said: "Under Magna’s ownership, Getrag is well positioned to become even stronger. I expect that the combined businesses will be even better positioned to realise opportunities being created in the powertrain segment by the need for improved fuel efficiency and reduced carbon emissions.”

In India, Magna International has a total of 11 manufacturing facilities and caters to wide gamut of passenger car manufacturers in the country. The company recently inaugurated its two new facilities in Sanand, Guajarat at a supplier park close to Ford India’s manufacturing unit.

Autocar Professional was the first to shed light on Magna International’s plans in India after completing the acquisition of Getrag.

In an exclusive interaction recently, Jim Tobin, chief marketing officer and president of Magna Asia, had revealed the auto parts maker will supply transmissions to Ford India through the recently acquired Getrag Systems from an upcoming facility in Sanand.

Also read: Magna to supply manual transmissions for India-made Figo, Aspire from Sanand