ZF poised to acquire Haldex for $516 million

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Updated Aug 9, 2016

zfconceptinnovationZF announced Thursday it had upped SAF Holland’s ante in the bid to acquire Haldex, and is in the process of sealing a more than half a billion dollar deal to buy the Swedish manufacturer.

Last month, SAF Holland reportedly offered $495 million to purchase Haldex AB but Thursday ZF swooped in with a bid of $516 million, the company confirmed.

A release issued Thursday morning from ZF says the company has obtained an undertaking to accept the offer from Haldex Chairman of the Board of Göran Carlson and the offer has been unanimously recommended by Haldex’s Board of Directors.

“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,” says Magnus Johansson, Haldex board member and spokesperson.

“We believe that our businesses are truly complementary and that a combination will offer unique value for all stakeholders,” Dr. Stefan Sommer, Chief Executive Officer of ZF. “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.”

The offer is conditional, among other things, upon being accepted by Haldex’s shareholders to an extent that ZF becomes the owner of more than 90 percent of the outstanding shares in Haldex. The announced transaction is further subject to approval from competition authorities.

With Haldex’s brake systems for commercial vehicles in its fold, ZF 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, the company says.