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Auto Supplier Mergers More than Double in Value
The value of mergers among the world's auto suppliers will surge to a record $48 billion this year from $14 billion in 2014, according to an annual analysis by London-based PricewaterhouseCoopers LLP.
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The value of mergers among the world's auto suppliers will surge to a record $48 billion this year from $14 billion in 2014, according to an annual analysis by London-based PricewaterhouseCoopers LLP. The previous peak was $35 billion in deals in 2007.
PwC says the number of supplier mergers and acquisitions in 2015 will decline to 201 from 217 transactions last year. The biggest deal this year is ZF Friedrichshafen AG's $12 billion purchase of TRW Automotive Holdings Corp.
PwC tells Bloomberg News that private equity firms were involved in 27% of supplier merger deals last year compared with a historic average of 10%. The firm opines that such firms now see investing in the automotive supply base as a technology play.