ABC Auto parts, 1% owner of auto parts retailer ABC, will merge with 2nd Auto parts and close the deal to close its stores in the United States and Canada.
The announcement was made Wednesday in Los Angeles, the company’s first U.S. location since the closure of its flagship flagship stores in Austin, Texas.
The agreement is expected to close by the end of the month.
ABC will also pay $3.4 billion to acquire 2nd auto parts and a significant stake in a new automaker, General Motors Co. The merger is expected, according to people familiar with the matter, to result in a larger company with more than 1,000 employees.
ABC is in the process of identifying its next owner, and is also negotiating with other companies interested in acquiring the businesses, according the people, who asked not to be identified discussing confidential negotiations.
In its first fiscal year, the U.K.-based company posted a net loss of $1.1 billion and a $1 billion cash deficit.
ABC has been operating at a loss since the end-2016.
ABC, founded in 1972, is one of the most successful companies in the auto parts industry.
The company has been a major buyer of parts for decades, buying a wide range of items including brake pads, brake rotors, axles, brakes, tires and transmissions.
In recent years, the auto maker has expanded its operations into several key segments, including electric vehicles, autonomous driving, autonomous systems, automotive parts, and vehicle maintenance.
The sale of the ABC stores, including the Los Angeles store, will be one of its largest sales in its history.
In April, the retailer sold the first of several Austin, Tex., locations to General Motors, marking the company first U and Canadian location since it opened in 1986.
The deal also includes the purchase of a second Austin store and the acquisition of a third, which will become a U.N. headquarters.
The news of the deal with General Motors comes a day after the company announced it would close its Austin-based retail operations, including its flagship store in the Austin suburb of Round Rock, which has a population of nearly 12,000.
The decision was expected to save the company $100 million annually.