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ZF Completes $7-Billion Wabco Takeover

June 2, 2020
ZF is a global manufacturer of driveline and chassis technologies for cars and commercial vehicles, and in taking over WABCO it gains a new specialty for commercial vehicle sector brake technologies.

ZF Friedrichshafen AG completed a $7-billion takeover of Wabco Holdings, a deal announced in March 2019 as a combination of "two global technology leaders serving OEMs and fleets in the automotive and commercial vehicle industry". ZF is a global developer and manufacturer of driveline and chassis technologies for cars and commercial vehicles, while WABCO’s specialties are focused in the commercial-vehicle sector, especially braking technologies, active air suspension systems, and fleet management systems.

Incorporating Wabco reinforces ZF as a major developer and supplier to the commercial-vehicle industry, including conventional and electric drives, conventional and electric chassis parts, sensors, and now integrated technologies for braking, steering, and driver assistance.

Following the merger, ZF reports it has 160,000 employees at 260 locations in 41 countries. The two businesses had combined of $43.9 billion in 2019.

While ZF has a Commercial Vehicle Technology division, Wabco will operate as a separate ZF division, the Commercial Vehicle Control Systems division. It's projected to have about 12,000 employees at 45 locations worldwide.

To gain federal clearance for their merger ZF and Wabco agreed to divest Wabco’s North American steering components business.

“Thanks to our perfectly complementary portfolios and competencies, we are able to offer unprecedented solutions and services for manufacturers and fleets globally,” ZF CEO Wolf-Henning Scheider stated. “In this way, we are actively shaping the future of the changing transportation industry.”