Fiat Chrysler Automobiles N.V. (FCA) has entered into a definitive agreement to sell its automotive components business Magneti Marelli S.p.A. to CK Holdings Co., Ltd., a holding company of Japanese automotive component supplier Calsonic Kansei.

Following the closing of the transaction, CK Holdings will be renamed as Magneti Marelli CK Holdings. The combined businesses of Calsonic Kansei and Magneti Marelli will create the world's 7th largest global automotive components supplier based on total revenues.

The agreement represents a transaction value of EUR 6.2 billion ($7.124 billion). The transaction is expected to close in the first half of 2019 and is subject to regulatory approvals and other customary closing conditions.

The new business entity will operate out of nearly 200 facilities and R&D centers across Europe, Japan, the Americas, and Asia Pacific.