May 11, 2007
Russian conglomerate invests $1.7 billion in Magna International
Aurora Ontario – Magna International Inc. announced a $1.7 billion investment in Magna by Russian Machines, a wholly owned subsidiary of Basic Element. Basic Element is one of the largest, privately held industrial conglomerates in Russia, held by one of Russia’s wealthiest men, Oleg Deripaska.
Frank Stronach, Magna’s Chairman commented: “This proposed alliance with Basic Element and its respected founder and Chairman, Oleg Deripaska, is an exciting opportunity for Magna. Our partnership will accelerate Magna’s growth in Russia and surrounding countries, markets that we see as holding significant opportunities for us. In addition, the culture, business philosophies and operating principles that have been the cornerstone of Magna’s success for more than 50 years, including employee profit sharing reflected in our Corporate Constitution and the Employee Charter principles, will be preserved and will continue to be our strength going forward.”
The investment comes at a time when Magna and its partners are the frontrunners in a bid to buy the ailing Chrysler Group from DaimlerChrysler. Magna designs, develops and manufactures automotive systems, assemblies, modules and components, and engineers and assembles complete vehicles, primarily for sale to original equipment manufacturers of cars and light trucks in North America, Europe, Asia, South America and Africa.