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WABCO India spurts as German auto-parts maker to acquire WABCO Holdings Inc

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Capital Market
Last Updated : Mar 25 2020 | 3:04 PM IST

WABCO India rose 7.18% to Rs 6819.45 at 11:33 IST on BSE as German auto-parts maker ZF Friedrichshafen AG will acquire WABCO Holdings Inc for roughly $7 billion.

The announcement was made after market hours yesterday, 28 March 2019.

Meanwhile, the S&P BSE Sensex was up 49.78 points, or 0.13% to 38,595.50.

On the BSE, 9,743 shares were traded in the counter so far compared with average daily volumes of 740 shares in the past two weeks. The stock had hit a high of Rs 7082.65 and a low of Rs 6750 so far during the day. The stock hit a 52-week high of Rs 8,319.90 on 25 April 2018. The stock hit a 52-week low of Rs 5,798.40 on 18 February 2019.

WABCO India said that its US-based ultimate parent company, WABCO Holdings Inc., announced that it has entered into a definitive merger agreement with ZF Friedrichshafen AG ("ZF"), a privately held global leader in driveline and chassis technologies. Under the agreement, ZF will acquire all outstanding shares of WABCO for $136.50 per share in an all-cash transaction for an equity value of over $7 billion. The transaction is expected to close in early 2020.

The transaction will bring together two global technology leaders serving OEMs and fleets in the automotive and commercial vehicle industry, combining WABCO's capabilities in commercial vehicle safety and efficiency, including technologies involved in vehicle dynamics control, active air suspension systems, and fleet management systems with ZF's leading position in driveline and chassis technologies for cars and commercial vehicles.

WABCO India said that it does not intend to make any comments on this matter unless and until it deems further disclosure is required. As on 31 December 2018, WABCO Asia held 75% stake in WABCO India.

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Net profit of WABCO India declined 6.29% to Rs 59.79 crore on 6.12% rise in net sales to Rs 653.19 crore in Q3 December 2018 over Q3 December 2017.

WABCO India designs, manufactures and markets conventional braking products, advanced braking systems, and other related air assisted products and systems.

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First Published: Mar 29 2019 | 11:38 AM IST

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