kscarbel2 Posted February 27, 2019 Share Posted February 27, 2019 Automotive News - Reuters / February 27, 2019 FRANKFURT -- German auto supplier ZF Friedrichshafen AG is considering a takeover of Belgium-based competitor Wabco and the two companies have held preliminary discussions. ZF Friedrichshafen's supervisory board has already discussed a potential acquisition of Wabco, a German newspaper paper reported, citing financial sources, adding that no decision had been taken. Wabco Holdings Inc. shares, which carry a market value of about $6.2 billion, rose 8 percent to close the day at $130.49. Wabco issued this statement following earlier reports: "In response to market speculation and noting recent appreciation in its stock price, the company confirmed today that it has been approached by ZF Friedrichshafen AG and has engaged in preliminary discussions concerning a potential transaction." The company, based in Brussels, specializes in braking control systems and other safety technologies for commercial vehicles. Last week Wabco reported record annual sales and earnings, posting net income of $418 million on revenue of $3.83 billion. It employs about 15,000 people in 40 countries. "ZF regularly reviews strategic options for action, including acquisitions, but there is no decision in this direction," a ZF spokesman told Reuters. ZF has done large acquisitions in the past and in 2014 bought TRW Automotive for $13.5 billion to expand into the potentially lucrative self-driving car market. In June, ZF CEO Wolf-Henning Scheider, when asked if Wabco could still be of interest, said that brakes were not a priority for ZF at the moment as it focuses on the switch to electric and autonomous driving. ZF plans to invest more than 12 billion euros ($13.6 billion) into e-mobility and autonomous driving. ZF ranks No. 5 on the Automotive News list of the top 100 global suppliers with worldwide sales to automakers of $34.5 billion in 2017. Quote Link to comment Share on other sites More sharing options...
RoadwayR Posted February 28, 2019 Share Posted February 28, 2019 Didn't Wabco just buy G.E.'s locomotive operation? Quote Link to comment Share on other sites More sharing options...
kscarbel2 Posted February 28, 2019 Author Share Posted February 28, 2019 41 minutes ago, RoadwayR said: Didn't Wabco just buy G.E.'s locomotive operation? https://getransportation.com/wabtec-and-ge-transportation-merge-creating-global-leader-rail-equipment-services-and-software http://old.post-gazette.com/businessnews/19990604motive2.asp Quote Link to comment Share on other sites More sharing options...
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