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Strategies & Market Trends : Speculating in Takeover Targets -- Ignore unavailable to you. Want to Upgrade?


To: richardred who wrote (2993)9/15/2014 11:18:44 PM
From: richardred  Respond to of 6453
 
Not much of a premium here on a huge deal- a 2% premium to its Friday closing price of $103.85

Germany's ZF to buy TRW Automotive for $12.4B
Brent Snavely , Detroit Free Press 4:24 p.m. EDT September 15, 2014


(Photo: ZF)

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In a deal that would create the world's second largest automotive supplier, Germany's ZF Friedrichshafen agreed to buy Livonia, Mich.-based TRW Automotive for approximately $12.4 billion

Together, the two automakers have combined annual sales of more than $41 billion and about 138,000 employees. ZF Group manages its North American operations out of its Northville, Mich., office.

"The major motivation for this transaction is technology driven and to serve some markets especially in the field of electro-mobility and in the field of autonomous driving," ZF CEO Stefan Sommer said in a conference call. "The combined company has greater scale and power in the world and with combined technological know how … we expect more power, more competitiveness."

The only auto supplier larger than the potential combination of ZF Group and TRW Automotive is another German supplier, Robert Bosch.

The companies said that TRW Automotive Holdings will be a separate division within ZF -- best known as a maker of transmissions.

However, Stephanie Brinley, senior analyst for IHS Automotive, said, "I would expect to see that a lot of that activity would be combined over time. It's not going to stay separate for the long term."

The agreement has been approved by ZF's Supervisory Board and Management Board and TRW's Board of Directors. The deal is expected to close during the first half of 2015.

ZF will pay $105.60 per TRW share, a 2% premium to its Friday closing price of $103.85. The companies put the transaction's value at about $13.5 billion.

Shares of TRW closed down 81 cents, or 0.78%, at 103.04 on Monday. But so far this year, TRW's stock has increased about 40% from $73.64 on Jan. 2.

ZF CFO Konstantin Sauer said the company has received financing commitments from Citigroup and Deutsche Bank and is talking to additional banks that may become part of the deal. ZF said it expects to reduce its financial leverage significantly again in the coming years.

"We have long respected ZF as a very successful company in our industry with similar values and focus on innovation," John C. Plant, CEO of TRW said in a statement. "This transaction provides significant benefits for our shareholders who will receive a full and certain value for their shares, as well as for our employees, customers and communities."

The deal also will bring together two very different companies. ZF Group is best known for its transmissions,but also makes steering systems, axles, clutches and shock absorbers. TRW makes airbags, seat belts, steering wheels, brakes, brake systems and other electronics.

"This is a complementary — not a synergistic deal," Sommer said. "It's for me very, very important to have the best fit situation in all markets. And this is what the (automakers) require with the worldwide platforms with the shorter life cycle of cars."

usatoday.com



To: richardred who wrote (2993)7/16/2015 9:31:04 AM
From: richardred  Read Replies (1) | Respond to of 6453
 
Seems there has been a lot of acquisitions in the Auto parts related sector of late.

Magna International to Buy Getrag of Germany for $1.9 Billion
By CHAD BRAYJULY 16, 2015



LONDON — The Canadian auto parts maker Magna International said on Thursday that it had agreed to acquire one of the world’s largest suppliers of automotive transmissions, the Getrag Group, for 1.75 billion euros, or about $1.9 billion.

The deal will bolster Magna’s powertrain and transmission business and increase its growth potential in the Chinese market.

Getrag is a joint venture partner with Ford and its customers include BMW, Daimler, Renault and Volvo. It also has joint venture relationships with Chinese automakers Jiangling and Dongfeng.

“As part of our ongoing product portfolio review, we have identified the expansion of our powertrain business as a strategic priority,” Donald J. Walker, the Magna chief executive, said in a news release.

“Getrag is an excellent fit with this strategy,” Mr. Walker said. “Getrag is a technology leader in a product area that we believe is well positioned to benefit from industry trends that are driving increased vehicle fuel-efficiency and reduced emissions.”

The transaction is expected to close near the end of 2015 and is subject to regulatory approval.

Founded in 1935, Getrag, based in Untergruppenbach, Germany, employs about 13,500 people at 13 manufacturing plants and 10 engineering centers in nine countries in Europe, Asia and North America. In 2014, the company posted €1.7 billion in sales, excluding €1.6 billion in sales from its joint ventures last year.

“We join forces with a reliable, experienced and well-performing global company,” Mihir Kotecha, the Getrag chief executive, said in a news release. “This move will bring both sides extraordinary benefits.”

The deal valued Getrag at about €2.45 billion, including debt and pension liabilities.

Magna, based in Aurora, Ontario, employs about 133,000 people at 316 manufacturing plant and 87 product development, engineering and sales centers in 29 countries. The company reported sales of $36.6 billion in 2014.

nytimes.com