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ZF Buys TRW in Attempt to Create Bosch-Rivaling Supply Giant

It’s been a tight-lipped rumor for some time but today it was confirmed. ZF Friedrichshafen bought TRW Automotive today in a $13.5 billion deal, in a daring move to create a supply giant that would rival Robert Bosch GmbH.
TRW-ZF Logo 1 photo
The move wasn’t officially done today as it will take a considerable amount of time but Automotive News confirms that shareholders gave their consent for the move to be made. It would seem like ZF made an offer as far back as September but the terms weren’t agreed on by TRW at that time.

The previous offer was for $105.6 for each share which would add up to $12.4 billion. Today, the TRW announced that it will be getting $13.5 billion which would translate into a share price of around $115.

TRW is a global provider or all sorts of electronics (including airbags), braking parts (discs and plates) and steering equipment for cars amongst other things. Companies that are supplied by them include Ford and General Motors just to name two of the biggest.

On the other hand, ZF Friedrichshafen is specialized in chassis components, sensors and gearboxes and their famous 8HP automatic gearbox is regarded as the best in the business at the moment. With this move, they will the entering a couple of new segments.

The final details of the acquisition are expected to be completed by June, next year and until then it will have to clear some checks done by antitrust watchdogs, to make sure everything’s legal.

 
 
 
 
 

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