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In a press release from the company on Thursday, ZF Friedrichshafen AG and TRW Automotive Holdings Corp. announced a definitive agreement under which ZF will acquire TRW. The combined company is poised to be a global leader in the automotive supplier business with pro forma combined sales of about € 30 billion (approx. US$ 41 billion) and 138,000 employees, stated the press release. The companies expect that together, ZF and TRW will be uniquely positioned to benefit from the megatrends of the automotive industry on a global basis, they said.
Segments like fuel efficiency, increased safety requirements and autonomous driving that are high-growth and technology intensive are where both companies are aiming to work. “ZF is an important player in driveline and chassis technologies, whereas TRW is a significant supplier of active and passive safety technologies, including advanced driver assistance systems. Both companies have demonstrated a strong track record based on high product quality and continued innovation for their customers,” claimed a press release from both companies.
Combined investments in R&D are expected to amount to about US$ 2.1 billion, globally, projecting ZF as a “global leader in R&D”.
Stefan Sommer, Chief Executive Officer of ZF, said: “The acquisition of TRW fits perfectly into our long-term strategy. The transaction combines two highly successful companies that have remark-able track records of innovation and growth and solid financial positions. We are strengthening our future prospects by enlarging our product portfolio with acknowledged technologies in the most attractive segments.”
Sommer continued: “This is an acquisition in the spirit of a partnership. We look forward to welcoming TRW’s employees to our company and are committed to working closely with them to realize the potential of this exciting combination. The Detroit metro area will remain a major business center for the company, and we expect employees from both companies to benefit from the enhanced career opportunities at a larger, more diversified company.”
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