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Aptiv Announces Spin-Off of EDS Business

Story Highlights
  • Aptiv plans to spin off its EDS business into a new independent company by March 2026.
  • The separation will enhance strategic focus, benefiting both Aptiv and EDS in their respective markets.
  • Looking for the best stocks to buy? Follow the recommendations of top-performing analysts.
Aptiv Announces Spin-Off of EDS Business

The latest announcement is out from Aptiv ( (APTV) ).

On January 22, 2025, Aptiv PLC announced its plan to separate its Electrical Distribution Systems (EDS) business into a new independent publicly traded company. This strategic move, approved by the Board of Directors, aims to enhance strategic focus and capitalize on market opportunities, positioning both Aptiv and EDS for growth. The separation is expected to occur through a tax-free spin-off by March 31, 2026, pending final approvals and conditions. Aptiv’s post-separation focus will be on high-growth, high-margin businesses aligned with global trends, while EDS will continue to be a leader in automotive and commercial vehicle markets, focusing on low and high voltage electrical architectures. Both companies are expected to benefit from tailored strategies, capital structures, and investor bases, ultimately creating significant value for shareholders.

More about Aptiv

Aptiv PLC is a global technology company focused on enabling a safer, greener, and more connected future. The company provides advanced software and hardware technologies, including sensor-to-cloud tech solutions, and highly engineered interconnects and components for diverse markets such as automotive, aerospace, defense, telecommunications, and industrial sectors.

YTD Price Performance: 2.47%

Average Trading Volume: 4,083,178

Technical Sentiment Consensus Rating: Buy

Current Market Cap: $14.52B

See more insights into APTV stock on TipRanks’ Stock Analysis page.

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