ZF and Wabco to form a global integrated systems provider for commercial vehicle technology.
Story by: Ashish Bhatia
It turns out the early reports of ZF Friedrichshafen AG, a leading global technology group and supplier of mobility systems for passenger cars, commercial vehicles and industrial technology acquiring Wabco, a leading global supplier of braking control systems,technologies and services that improve safety, efficiency and connectivity of commercial vehicles including trucks, buses and trailers that we cited were indeed true. The two entities will form a global integrated systems provider for commercial vehicle technology with a reported combined sales of approximately €40 billion. Expected to complement capabilities of each entity, the acquisition is expected to create an added value for ZF’s commercial vehicle customers. As per the company’s press release, ZF will acquire WABCO for $136.50 per share for a total equity value of approximately $7 billion. The acquisition process is likely to be closed by early 2020 with the planne acquisition approved by ZF’s Management Board and Supervisory Board and Wabco’s Board of Directors.
Drawing attention to Wabco’s diverse products and services including integrated braking systems and stability control, air suspension systems, transmission automation controls, as well as aerodynamics, telematics, and fleet management Wolf-Henning Scheider, CEO of ZF, stated, “We believe that, together
with WABCO, ZF can form the world’s leading integrated systems
provider for commercial vehicle technology, creating long-term value
and security for its customers, employees and owners. In creating long-term value, Schroeder meant that the acquisition would add a stable and growing business segment and
enable the existing commercial vehicle division of ZF to expand its expertise in vehicle dynamics control. Said to also be in the interest of ZF’s owners, the Zeppelin Foundation and the Dr. Jürgen and
Irmgard Ulderup Foundation, the transaction it is said will result in a sustainable strengthening of ZF.
Averred Jacques Esculier, Chairman and CEO of Wabco, “Joining forces
with ZF will create a leading global technology company well positioned to capitalise on future demand for
autonomous, efficient and connected commercial vehicles.” “We have a
long history of successful collaboration to develop innovative
technologies with ZF with both companies sharing an uncompromising
drive for excellence, passion for innovation, and exceptional customer
focus,” he added.
As part of the planned Next Generation Mobility strategy, interestingly, the acquisition is being looked upon as an effort to expand the company’s expertise mainly for CV braking systems. These include commercial vehicle braking solutions for the first time. It plays a central role for the
control of automated driving functions – including emergency braking manoeuvres of trucks and trailers. ZF expects that automated driving functions will primarily be implemented for commercial vehicles and in areas with low complexity and traffic (e.g. factory sites, airports, agriculture). The acquisition of Wabco comes as a major move after the company acquired TRW in 2014 and known to operate under a separate active and passive safety technology division.
Also read https://autocomponentsindia.com/zf-india-expands-manufacturing-capability/
