WABCO India spurted 9.68% to Rs 6,794.95 after Wabco Holdings Inc and ZF Friedrichshafen AG obtained Chinese regulatory clearance for their previously announced merger.
"All required regulatory approvals have now been received. Wabco and ZF expect to close the merger on 29 May, subject to the satisfaction of all other closing conditions," they said in a statement.
Under the agreement announced in June last year, ZF will acquire all outstanding shares of Wabco for 136.50 dollars per share in an all-cash transaction for an equity value of more than seven billion dollars. The announcement was made on Saturday, 16 May 2020.
In March 2019, the company announced that German auto-parts maker ZF Friedrichshafen AG will acquire WABCO Holdings Inc for roughly $7 billion. WABCO Holdings Inc. is WABCO India's US-based parent company. The merger is said to 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.
On a standalone basis, the company's net profit tanked 35.3% to Rs 38.70 crore on a 41% drop in net sales to Rs 385.11 crore in Q3 December 2019 over Q3 December 2018.
WABCO India manufactures automotive parts. The company produces electronic braking, stability, and suspension and transmission control systems for heavy-duty commercial trucks, trailers and buses.
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