ZF makes $516 million bid for Haldex

ZF seeks to acquire Haldex Aktiebolag, a supplier of brake products and air suspension systems for commercial vehicles, and offered the company 100 kronor (SEK) per Haldex share in cash, valuing Haldex at SEK 4.4 billion, or $516 million.

ZF announced it has obtained an undertaking to accept the offer from Göran Carlson, the chairman of the Board of Directors of Haldex, being the largest shareholder of Haldex representing 5.7% of the total number of shares and votes in Haldex. The offer has been unanimously recommended by Haldex’s Board of Directors.

“A business combination of Haldex and ZF represents an outstanding opportunity for both companies to jointly expand their value to the customer in the supply for commercial vehicles in the field of drivetrain and chassis, including brake and air suspension solutions as well as for future megatrends in mobility as outlined in ZF’s Strategy 2025,” according to the company.          

With Haldex’s brake systems for commercial vehicles, ZF said it would be able to cover the whole functional chain of commercial vehicles in line with "See-Think-Act" (the aim of ZF’s technology is to enable vehicles to see, think, and act autonomously) and transfer fuel efficiency, autonomous driving and safety systems technologies known from passenger cars to commercial vehicles.

Dr. Stefan Sommer, CEO of ZF, said: “We believe that our businesses are truly complementary and that a combination will offer unique value for all stakeholders. We are confident that we will be able to continue to develop Haldex’s market position under ZF ownership, thanks to ZF’s technological leadership, global reach and customer access, combined with Haldex’s technological competence, management skills and employees.”

Magnus Johansson, board member and spokesperson of the board of Haldex, said: “ZF’s strong capabilities within electronics and software development as well as global reach and customer access offer an excellent opportunity to further develop Haldex, thereby allowing Haldex to continue its development of future braking systems and expansion of its current product portfolio.”

“The offer provides Haldex shareholders with an opportunity to realize value from their investment immediately at both high multiples and significant premium to recently traded prices of Haldex’s shares as well as a premium to the SAF-Holland offer,” Johansson added.

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