Germany’s ZF Friedrichshafen announced Monday its $11.74 billion acquisition of Livonia, Mich.-based TRW Automotive, a deal that if completed will create the world’s second-largest auto parts supplier behind German market leader Robert Bosch.
Bosch recently agreed to acquire a 50 percent stake in a steering system joint venture for an undisclosed sum from ZF, which helped ease potential regulatory hurdles to the latter’s purchase of TRW. ZF made its initial nonbinding takeover offer for TRW in mid-July, but talks had hit a snag over concerns that the ZF Lenksysteme unit could derail a potential combination on regulatory grounds. Including debt, the total deal value is roughly $13.5 billion.
