ZF Eyes Another Large Acquisition

CEO Stefan Sommer says ZF Friedrichshafen AG is financially strong enough to make another big acquisition similar in size to its $13.5 billion takeover of TRW Automotive Holdings Corp. two years ago.

Reuters notes that ZF has been pursuing more modest purchases for more than a year as it strives to broaden its base beyond components for piston-powered vehicles.

Last year the company bought 40% stakes in doubleSlash Net-Business GmbH, a vehicle networking software developer, and Ibeo Automotive, a supplier of lidar sensors used in autonomous vehicles.

Last October it dropped out of a bidding war with Knoor-Bremse to acquire Swedish brake systems supplier Haldex. Reports say the company also failed earlier this year to buy Wabco Holdings, a U.S.-based supplier of parts for commercial vehicles.

But ZF did buy 45% of Astyx Communication & Sensors, a German maker of ultra-high-frequency radar sensors, in March.