Global supplier of automotive interior systems and components Lear Corporation is to be acquired by American Real Estate Partners, L.P. (AREP), a holding company engaged in a variety of businesses.

Under the merger agreement, which is expected to close by the end of the second quarter of 2007, Lear will be acquired for approximately $5.3 billion, including the assumption of debt.

Commenting on the deal, CEO and chairman of Lear, Bob Rossiter, said, "Following a very thorough review of the proposed transaction, our board unanimously concluded that the AREP offer was in the best interests of Lear's shareholders."  However, the company does intend to solicit other offers to ensure that the value of the company is maximised.

Lear, with annual net sales of $17.8 billion in 2006, supplies complete seating systems, electronic products and electrical distribution systems and other interior products. The company employs some 104,000 staff at 275 facilities in 33 countries.