A German paper has reported that car parts supplier ZF Friedrichshafen mulls the takeover of US rival TRW Automotive Holdings Corp to rapidly advance in several prospective fields – including the market for automated driving and connected cars.
The German parts maker announced earlier this month it initiated negotiations for a deal that would see it assuming control over US peer TRW. The takeover has been valued by the lenders to as much as $13 billion, as the duo would combine to form the world’s second biggest auto parts supplier.
“TRW, with its years of market expertise, technology and products would be the perfect complement,” ZF CFO Konstantin Sauer was quoted by Germany’s Boersen-Zeitung. “We have thought long and hard about this to find a way that matches our company values.”
According to the senior executive, privately held ZF Friedrichshafen is well suited to compete in the areas of powertrains and chassis, but as other segments have a growing role, the company aims to keep pace – especially in sensitive new segments like the self-driving cars and internet-enabled devices in autos.
The CFO declined to give any specific details on the financial aspect of the bid, but for ZF – a company with revenue last year of 16.84 billion euros ($22.8 billion) – TRW’s acquisition (valued now at around $11 billion) would represent a major effort.
by Aurel Niculescu
) - Monday, July 21st, 2014 - filed under Industry
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