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FTC approves divestiture in ZF Friedrichshafen, TRW deal

Staff writer |
Following a public comment period, the Federal Trade Commission (FTC) has approved an application from ZF Friedrichshafen AG and TRW Automotive Holdings Corp. to sell TRW’s North American and European linkage and suspension business for heavy and light vehicles to THK of Japan.

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TRW Automotive Holdings announced in September last year that it has entered into a definitive agreement with ZF Friedrichshafen AG under which ZF will acquire all outstanding shares of TRW for $105.60 per share.

The divestiture was required by the FTC’s June 2015 final order settling charges that the $12.4 billion merger of ZF and TRW Automotive Holdings – combining two of the world’s largest automotive parts manufacturers – would likely harm competition in the North American market for heavy vehicle tie rods.

The parties’ divestiture also addresses competition concerns raised by the European Commission.

The linkage and suspension business to be divested includes five manufacturing plants in Michigan, Canada, the Czech Republic, and Germany, and a research and development lab in Germany, which THK will lease from TRW until THK completes its move to new space.


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