ZF Friedrichshafen AG has announced that it has finalized a deal to acquire WABCO in a USD 7 billion deal with the price for each share being USD 136.50. The deal has already been the board of directors of both companies. The outcome of the acquisition will be the creation of a global integrated mobility systems provider for commercial vehicles, which will provide ZF’s commercial vehicle customers with added value. The company formed by the merger of Wabco and ZF Friedrichshafen will have sales of about 40 billion euros.
WABCO is one of the leading suppliers of braking control systems, technologies and services that are meant to enhance safety, efficiency and connectivity of commercial vehicles. Its products can be used for all kinds of commercial vehicles including trucks, buses and trailers and they include integrated braking systems and stability control, air suspension systems, transmission automation controls, as well as aerodynamics, telematics, and fleet management solutions. WABCO is listed on the New York Stock Exchange (NYSE) and has as many as 16,000 employees spread across 40 countries.
Commenting on the deal, Wolf-Henning Scheider, CEO of ZF, said that he believed that as a result for the merger, ZF and Wabco will now be the leading integrated systems provider for commercial vehicle technology in the world. For ZF, the acquisition of Wabco means adding a stable and growing business segment to its business which will help the company to expand the expertise of its existing commercial vehicle division in vehicle dynamics control. Thus, ZF will be able to offer comprehensive systems for safe and automated mobility solutions for passengers and goods to its customers.
Jacques Esculier, Chairman and CEO of WABCO, said, “Joining forces with highly respected ZF will create a leading global technology company well positioned to capitalise on future demand for autonomous, efficient and connected commercial vehicles. We have a long history of successful collaboration to develop innovative technologies with ZF with both companies sharing an uncompromising drive for excellence, passion for innovation, and exceptional customer focus.”
Manju Mathew, an MBA in marketing, completed publisher training courses from the Oxford Brookes University and New York University. She started with marketing and PR roles before moving on to her current position as a full time writer. Currently living in Dubai, her life as an expat has sharpened her observation skills and flair for writing. She enjoys writing about luxury cars like Ferrari, Lamborghini, etc even if she can only dream of owning them.
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