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ZF Friedrichshafen To Acquire WABCO For Total Equity Value Of About $7 Bln

ZF Friedrichshafen AG, a global technology group and supplier of mobility systems for passenger cars, commercial vehicles and industrial technology, said that it has entered into a definitive agreement to acquire WABCO (WBC) for $136.50 per share or a total equity value of approximately $7 billion.

The planned acquisition has been approved by ZF's Management Board and Supervisory Board and WABCO's Board of Directors. Together, ZF and WABCO will form a global integrated mobility systems provider for commercial vehicles, creating added value for ZF's commercial vehicle customers. The combined company will have sales of approximately €40 billion.

The transaction is subject to regulatory approvals, other customary closing conditions and shareholder approval with more than 50 percent of WABCO's outstanding shares. ZF expects to close the transaction in the beginning of 2020.

Due to the cash flow profile of both parties, ZF expects to reduce financial leverage significantly again following the completion of the transaction.

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