ZF Will Buy Wabco in $7 Billion Deal

ZF Friedrichshafen AG has agreed to acquire Brussels-based Wabco Holdings Inc. in a deal worth $7 billion.

The all-cash deal is at $136.50 per Wabco share, a 13% premium over the company’s closing price at the end of February. The sale is expected to be completed by the beginning of next year.

Wabco is a $3.8 billion-per-year U.S. supplier of brake and suspension systems to the commercial vehicles industry. ZF is a global supplier of driveline, chassis and vehicle safety systems.

ZF says the deal will boost its annual sales to about €40 billion ($45 billion) and enhance its capabilities as a global provider of integrated systems for conventional, connected and automated vehicles.