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Monday, September 15, 2014

Germany's ZF to take over TRW Automotive for $13.5 billion, (NYSE: TRW)

German car parts maker ZF Friedrichshafen has reached a deal to purchase U.S.-based TRW Automotive Holdings Corp for $105.60 per share in cash, creating a global automotive supply powerhouse.The transaction values the U.S. company at nearly $12 billion based on shares outstanding, and has an enterprise value of $13.5 billion including assumption of debt, the companies announced on Monday.The merger would create one of the world's largest automotive suppliers with combined annual revenue exceeding $40 billion. ZF, a major provider of steering systems and powertrains, would get a leading maker of automotive safety products, such as brakes and air bags.The deal price represents a premium of 16 percent over TRW's closing price on July 9 before news of ZF's takeover interest first emerged.

TRW Automotive Holdings Corp. (TRW Automotive) is a supplier of automotive systems, modules and components to global automotive original equipment manufacturers (OEMs) and related aftermarkets. Shares of TRW fell by 1.23% or $-1.275/share to $102.58. In the past year, the shares have traded as low as $68.72 and as high as $107.25. On average, 1695570 shares of TRW exchange hands on a given day and today's volume is recorded at 4947519.