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Wabco Finalizes Deal To Sell Itself To ZF Friedrichshafen

Jayson Derrick

Global supplier of safety, efficiency and connectivity products for commercial vehicles Wabco Holdings Inc. (NYSE: WBC) reached an agreement Thursday to sell itself to ZF Friedrichshafen AG, a Germany-based leader in driveline and chasis technology along with expertise in active and passive safety technology.

What Happened

The merger will combine Wabco's capabilities in commercial vehicle safety and efficiency with ZF's leadership status in driveline and chasis technologies, the companies said in the press release.

As part of the agreement, ZF will buy all outstanding shares of Wabco for $136.50 per share in cash, which represents a 13-percent premium from late February when ZF confirmed media reports it was in merger talks with Wabco.

Why It's Important

Wabco already works with ZF in creating industry-first technologies and the combination of the two comes at the "right price at the right," said Wabco CEO and Chairman Jacques Esculier. The combined entity will be in a better position to address growing competitive forces, especially in autonomous, electric and connected vehicles.

The combination of the two companies has already been unanimously approved by Wabco's board of directors but needs to be voted on by shareholders. If approved, the deal is scheduled to close early next year.

Wabco's stock traded lower by 10 percent at $131.40 per share Thursday morning.

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