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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 $13.5 billion including debt, creating a global automotive supply powerhouse with combined annual sales of more than $40 billion.The transaction would more than double ZF's sales in two of the world's largest car markets: China and the United States, and marry ZF, a major provider of steering systems and powertrains, with a leading maker of automotive safety products such as brakes and air bags.ZF is offering $105.60 in cash for each TRW share, or nearly $12 billion based on shares outstanding. That is a premium of 16 percent over the U.S. company's closing price on July 9, before news of ZF's takeover interest emerged.The price represents a multiple of 7.6 times TRW's earnings before interest, tax, depreciation and amortization for the year ended June 2014, making it one of the most expensive takeovers in the auto parts sector.

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 0.83% or $-0.86/share to $102.99. 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 10025003.