Knorr-Bremse Prevails over ZF in Haldex Bid

German braking system supplier Knorr-Bremse AG says it will continue its efforts to acquire Swedish rival Haldex AB, even though Haldex’s board has withdrawn support for the deal.

Last December Knorr-Bremse prevailed in a bidding war with ZF Friedrichshafen AG with a tender offer for 86% of Haldex at 120 kronor ($14) per share. ZF claimed its own bid at 110 kronor was pre-approved by regulators and warned that a takeover by Knorr-Bremse would face strong anti-competition headwinds.

Earlier today Haldex’s board agreed with ZF’s assessment, based on feedback from regulators. The board says it concludes “the probability of regulatory approval (is) so low” that it no longer supports the bid.

ZF, which holds a 20% stake in Haldex, says it won’t reopen its bid. But it vows to conduct itself as a “responsible shareholder.”