Auderghem, Belgium—Trucking parts supplier Wabco Holdings Inc. confirmed 28 March a it was being acquired by German rival ZF Friedrichshafen for more than $7 billion (€6.2 billion).
The all-cash deal is for $136.50 per share and represents a 13% premium to Wabco's closing price of $120.75 on 26 Feb.
Last month, Reuters reported that ZF had held takeover talks with Wabco, as the unlisted company seeks to overhaul its business for an era of self-driving trucks.
Wabco, based in Brussels, specialises in braking control systems and other safety technologies for commercial vehicles.
The Belgian company reported record annual sales and earnings last yaer, posting net income of $418 million on revenue of $3.83 billion.
Following the acquisition, ZF expects to generate about $44 billion a year in revenue.
The combined entity, said ZF CEO Wolf-Henning Scheider, could form “the world's leading integrated systems provider for commercial vehicle technology.”
"This will create the foundation for ZF to offer comprehensive systems for safe and automated mobility solutions for passengers and goods to our customers," he added.