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Precious metals firm Umicore intends to buy Delphi’s loss-making ceramic automotive catalysts business for $55.6 million.

Umicore achieved record results in 2006, with revenue of €1.9 billion – an annual growth of 11 per cent. This was driven by its automotive catalyst business. The Delphi deal would help expansion.

“The acquisition will accelerate the growth of our catalyst business and access to an extended customer base,” said Umicore. “Umicore and Delphi’s automotive catalyst business have strong links in terms of technologies and customers.”

But Delphi is currently operating under Chapter 11 bankruptcy protection. For the sale to go ahead it must first go through the US Bankruptcy Court and then a potential auction process.

A deal would give Umicore manufacturing and research facilities in the US, France and South Africa, along with more than 70 intellectual property patents. Umicore would also supply Delphi’s exhaust contracts.