German auto parts maker ZF Friedrichshafen has recently announced it has completed its $12.4 billion purchase of safety systems manufacturer TRW Automotive Holdings.
If it feels like the transaction is a massive one, we also have to remind the total value is actually even higher – at $13.5 billion, as the companies have to take into account debt as well – but thus the new ZF powerhouse jumps into the global second place among auto industry suppliers, only behind Germany’s Robert Bosch GMBH. “The combined company is a powerhouse of automotive technologies, ranging from driver assistance and occupant safety systems to drivelines and transmissions and braking and steering systems,” commented TRW chief executive John Plant. The move also reflects the auto supplying sector’s bid for consolidation, with major auto parts makers seeking purchases or alliances and the little b=players becoming specialists in certain fields.
According to earlier declarations by ZF’s chief executive officer Stefan Sommer, TRW’s counterpart would remain within the entity being created, with TRW set to operate as a subsidiary unit that handles active and passive safety technology. The duo will have a combined workforce of 138,000 people and the executive said the two business sides would not overlap, Additionally, ZF said in a statement announcing the completion of the purchase that complete integration of the two sides will likely last three to five years.
Via Automotive News Europe