Visteon announces agreement to consolidate climate operations under Halla

Visteon and its longtime Korean affiliate Halla Climate Control announced they have signed a definitive agreement to contribute most of Visteon's automotive climate business to HCC for a purchase price of $410M in cash, subject to certain adjustments. The transaction, first outlined in September 2012, is subject to regulatory reviews and other conditions, and is expected to be completed in the first quarter of 2013. HCC is expected to finance the transaction through a combination of cash on hand and moderate borrowing. Visteon owns 70% of Korean-based HCC and will have the same ownership level in the combined business.