ZF Friedrichshafen purchases TRW Automotive for $11.7 billion
Friedrichshafen, Germany and Livonia, MI, USA: ZF Friedrichshafen AG of Germany has entered into a contract to acquire TRW Automotive Holdings Corp for about $11.7 billion. This take over will create the world’s second largest automotive supplier by sales.
ZF Friedrichshafen will continue in its role as lead player in drive line and chassis technology while TRW will be involved in active and passive safety technologies besides driver assistance systems. Both companies together have proven track records in their respective fields which will be strengthened by an expanded product portfolio while employees from both companies will benefit by even greater career opportunities arising out of the merger.
With ZF acquiring TRW, sales in China and US markets, the two leading countries where automotive sales are concerned, are set to increase two fold. ZF has been present in the US since 1979 and has operations at 12 sites besides a new production site for automatic transmission systems in South Carolina set up in 2013. ZF sees a strong presence in Asia Pacific accounting for two thirds of company’s total sales while TRW’s presence is also spread throughout China. It is due to this that the two companies together expect to see annual sales of around $7.5 billion
While ZF takes over TRW, TRW will continue as a separate business division of ZF with headquarters in Friedrichshafen. The company is yet to take major decisions where management responsibilities are concerned and are planning to set up integrated teams with representations from both companies. These and other decisions with regard to the merger will be taken with Sullivan & Cromwell acting as legal advisors while financial advisers are CitiGroup and Deutsche Bank.
Email - [email protected]
Latest posts by Pearl Daniels (see all)
- Mahindra XUV500 side airbags fail to deploy in a multiple rollover crash - August 4, 2015
- 2015 Honda CBR150R unveiled with new colours at RevFest - August 4, 2015
- 2015 Honda CBR250R with cosmetic updates unveiled at RevFest - August 4, 2015