GM And Onex Up On Transmission Deal

Includes: GM, ONEXF
by: FP Trading Desk

Shares of General Motors Corp. (NYSE:GM) were up 2.5%, or US93¢ to $38.34, at around noon ET on Thursday after the company announced it agreed to sell Allison Transmission for US$5.575-billion to a private equity team.

The Carlyle Group and Onex Corp. (OTCPK:ONEXF) are the buyers of the Indiana-based transmission designer and manufacturer, which they say generates annual revenues of more than US$2-billion.

Onex and The Carlyle Group will split the US$1.5-billion equity portion of the deal.

Onex shares rose 4%, or C$1.54 to C$37.20.