The buying company is owned by Russian metals mogul Oleg Deripaska, while Magna International is headed by founder Frank Stronach, who also serves as chairman of affiliated racetrack company Magna Entertainment Corp.
It is believed that Stronach and Deripaska will each have a 42% interest in a holding company that will control Magna International, with 16% owned by Magna executives.
The deal is scheduled to close Sept. 20, according to Wall Street Journal.
Magna International was founded in 1969 out of the merger of two other entities, including one Stronach started in 1957, according to the company's Web site. Magna Entertainment, which owns or operates 11 North American racetracks, was spun off from Magna International in 1999.
In Aug. 28 trading on the New York Stock Exchange, Magna International closed at $86.25, down $2.48, or 2.8%, on a day when the Dow Jones Industrial Average fell 2.1% (280 points) to close at 13042. Magna Entertainment closed trading on the NASDAQ board at $1.88, a decline of 3.6% from the previous close of $1.95.