BorgWarner Inc. (BWA), an automotive supplier, said on Tuesday that it would buy the Electric Vehicle Solution from Hubei Surpass Sun Electric or SSE, a Chinese electric motors maker, for up to RMB 410 million. Electric Vehicle Solution is an arm of SSE consisting of Smart Grid and Smart Energy business.
SSE's charging and electrification expertise in China is expected to complement BorgWarner's existing capabilities in Europe and North America, BorgWarner said in a statement.
According to the deal, which is expected to be closed in the first quarter of 2023, a sum of around RMB 267 million would be transferred at or soon after the transaction. The remaining up to RMB 143 million is expected to be paid in the form of contingent payments over around two years after the closing.
Headquartered in Xiangyang of Hubei province, SSE's 2022 revenues for the electrification business are expected to be at around RMB 180 million.
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