Delayed decision on ZF-TRW merger
- March 07, 2015
German supplier ZF Friedrichshafen has, according to press reports, offered concessions in its bid to secure European Union approval for its $13.5 billion takeover of US rival TRW Automotive Holdings.
The deal, one of the biggest in the automotive industry for years, requires approval by the European Commission which has announced that a decision will be made by March 12. Originally the European Commission had expected to announce the result of its deliberations by Feb. 25.
As part of its desire to obtain approval by the European competition authorities ZF sold its steering systems business to German industrial group Robert Bosch in the autumn.
Both companies operate reman facilities within their business areas. TRW makes car safety products such as brakes and airbags for e.g. Ford, General Motors and Volkswagen.
ZF Friedrichshafen supplies chassis components to Audi, BMW and other carmakers. If the merger gets the go-ahead from Brussels the result will be the world’s second largest component supplier after Bosch.