ZF to Acquire TRW for €9 Billion

ZF Friedrichshafen AG has agreed to buy U.S. safety systems supplier TRW Automotive Holdings Corp. for $105.60 per share.

The all-cash deal is worth €9 billion ($11.7 billion) and is expected to close in the first half of 2015.

The merger will create an auto supplier second in size only to Robert Bosch GmbH with some 138,000 employees and nearly €32 billion in sales worldwide.

Chassis and driveline systems maker ZF says the deal will help the combined companies pursue the electric vehicle, connected car and driverless vehicle markets.

ZF cleared a looming antitrust hurdle earlier today by arranging to sell its 50% stake in a steering-system venture with Robert Bosch GmbH for an undisclosed price. The partnership competes with TRW's own steering business.

TRW will operate as a new division of ZF. Because the businesses of the two companies complement rather than compete, ZF expects cost savings to come primarily through greater purchasing power.

The acquisition will enable ZF to more than double sales in China and the U.S. to €4.3 billion ($5.5 billion) and €7.1 billion ($9.0), respectively.