CCI approves ZF's acquisition of WABCO Holdings Inc
17 February 2020
The Competition Commission of India (CCI) has approved the proposed transaction relating to the acquisition of 100 per cent shareholding of WABCO Holdings Inc by ZF Friedrichshafen AG (ZF) of Germany.
As per a combination notice filed with the Competition Commission of India (CCI), ZF will acquire 100 per cent shares in WABCO via its indirect wholly-owned subsidiary, Verona Merger Sub Corp, resulting in acquisition of sole control over WABCO.
Under the agreement, ZF will acquire all outstanding shares of WABCO for $136.50 per share in an all-cash transaction for an equity value of over $7 billion (about Rs49,700 crore), it had said.
ZF is a global technology company that develops, manufactures and distributes products and systems for passenger vehicles, commercial vehicles, off-highway vehicles and industrial technology. Its products include in particular gearboxes, steering, axles, clutches, dampers, chassis components and systems, active and passive safety technology for automotive applications and other associated components.
WABCO is a US-based global supplier of primarily pneumatic braking control systems, technologies and services that improve safety, efficiency and connectivity of commercial vehicles, including trucks, buses and trailers. Its products and services include integrated braking systems and stability control, air suspension systems, transmission automation controls as well as aerodynamics, and telematics. WABCO also supplies fleet operators with fleet management solutions, diagnostic tools, training and other expert services.
The Commission approved the proposed transaction subject to the carrying out of modifications proposed by ZF, under Regulation 25 (1A) of the Competition Commission of India (Procedure in regard to the transaction of business relating to combinations) Regulations, 2011.
CCI said it would issue a detailed order soon.