Knorr-Bremse Drops Haldex Bid

German braking supplier Knorr-Bremse AG has withdrawn its 5.5 billion kronor ($692 million) public offer to acquire Swedish rival Haldex AB.  

Last December Knorr-Bremse won a bidding war with ZF Friedrichshafen AG in a tender offer for 86% of Haldex. But the smaller company’s board of directors pulled their support for the deal in June due to concerns about receiving the necessary regulatory approvals.

This month the Swedish Securities Council rejected Knorr’s request to extend the acceptance period for its bid beyond the original Sept. 26 deadline. Haldex shareholders who had accepted Knorr-Bremse's offer will have their shares returned.

Haldex Chairman Jorgen Durban says the company hasn’t been approached by any new suitors. As a result, Durban says Haldex will refocus its efforts to growing its business with current and new customers, while taking a wait-and-see approach toward any potential new investors.

ZF remains Knorr-Bremse largest shareholder with 20% of the company but says it has no plans to reopen its bid for Haldex. Knorr-Bremse owns 15% of the Swedish company, which specializes in brake systems for road trailers and high-performance, all-wheel-drive technology for Volvo Cars.