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Hitachi offloads Clarion to Faurecia, OEMs plan vertical expansions

Hitachi has sold its Clarion wing to automotive OEM Faurecia, for $1.3bn, or around 5.7x earnings. Faurecia, majority owned by Peugeot, will be getting an established navigation system specialist, which it will look to use to boost its portfolio that it is trying to sell to automakers interested in making next-generation vehicles. It seems like a bargain, given that Clarion posted full year revenue of $1.58bn, even though it is paying a 31.2% share price premium. The Japanese conglomerate, Hitachi, has been trying to streamline itself for a while now, selling off non-core assets, and there are plenty of OEMs that are interested in expanding their stacks – looking to sell more of a complete system to an automaker, rather…

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