The biggest news of the auto parts sector of the year so far is ZF Friedrichshafen AG, the world leader in technology and supplier of mobility systems for industrial technologies, passenger cars, and commercial vehicles announced the signing of a final agreement for the acquisition of Wabco at a price of 136.50 per share. The intended takeover of a total cash transaction of $ 7Billion was approved by the board of directors of the ZF and Board of Directors of Wabco.
ZF, which has been at Wabco for a few years, finally succeeded. The ZF Group did not acquire Wabco in 2017. This is undoubtedly the largest acquisition after the acquisition of TRW in 2015 by ZF group of $ 12.4 billion. It is clear that consolidation is the name of the game in the components business, while cooperation in the OEM sector is growing.
The merger of Wabco and ZF makes both the companies one of the world’s leading providers of integrated systems for commercial vehicle technology, with a total turnover of around 40 billion euros. The corresponding possibilities of both companies will craft added value for the customers of ZF commercial vehicles.
The planned acquisition is part of ZF’s next-generation mobility strategy and will expand the company’s expertise with enterprise braking solutions for the first time. This plays a central role in driving automated steering functions, comprising emergency braking maneuvers for trailers and trucks.
ZF, a global leader in transmission and chassis technologies, as well as active and passive safety technologies, plans to close the transaction early in 2020. The company employs 146,000 people worldwide and has around 230 locations worldwide in some 40 nations. In 2017, ZF managed to touch the mark of 36.4 billion euros in turnover. The company invests over 6% of its revenue in R&D each year.