Robert Bosch is silent beneficiary of ZF’s TRW takeover

Article by Christian A., on September 18, 2014

With ZF Friedrichshafen's planned acquisition of TRW Automotive on full blast, another German supplier is bound to benefit from the transaction, albeit unexpectedly. Bosch recently announced plans to gain full control of its 50-50 steering joint venture with ZF.

That came after Bosch’s partner disclosed intentions to sell its stake in the joint venture – which build electronic steering systems critical to development of driverless cars – to the largest supplier in the world and purchase TRW for $105.60 a share. ZF has to let go of its holdings in the joint venture, ZF Lenksysteme, to avoid antitrust issues in the acquisition of TRW.

ZF doesn’t have to worry about losing a place in the steering segment since TRW also has a steering systems business largely involved in developing technology that could pave way for autonomous driving. ZF will have to pay TRW around $12.4 billion in cold cash, based on equity value.

TRW said its worth was at around $13.5 billion on an enterprise value basis. A combination of ZF and TRW would result to a company that is large enough to surpass Japan's Denso and Germany's Continental in terms of global sales – to around EUR30 billion ($38.8 billion).

ZF chief executive Stefan Sommer remarked in a telephone conference that modern suppliers need to have a breadth of technology and be "big and powerful."

Its acquisition of TRW would allow ZF to target "automotive megatrends," like fuel efficiency, tightening safety requirements and autonomous driving. ZF is seeking to add electronic components into its fold since its transmission business is being threatened by electric vehicles that have no gearboxes.

Juergen Pieper, an analyst for Bankhaus Metzler, remarked that transmissions are "probably going to be a business that's slowly dying.

Topics: bosch, trw, zf

If you liked the article, share on:

Comments

Recommended

Audi’s intention to bring out the Renn Sport Racing version of the Q5 was made clear when it unveiled the Audi SQ5 at the 2017 Detroit Motor Show early this...
by - July 22, 2017
Kia’s Sorento midsize sports utility vehicle is reaching its mid-cycle for the 2018 model year. Thus, its fans, enthusiasts and satisfied customers are expecting the Sorento to receive an update...
by - July 22, 2017
The Lotus Evora Sport 410 astonished the world after arriving as the more powerful and lighter edition of the already impressive Evora 400. Now, Lotus Cars is throwing in another...
by - July 22, 2017
The Europe-bound WRC hatch developed by Toyota and Gazoo Racing team will be limited to just 400 examples as reported by AutoCar this week. Otherwise known as Gazoo Racing Masters...
by - July 21, 2017
Even cops get excited when they’re assigned to drive the best cars in the market. In Austria, police officers drive around in a Porsche 911 Carrera while in Milan, authorities...
by - July 21, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries