Global PEs, auto parts companies eye stake in TVS' partner Brakes India: Report
ZF is said to exit the joint venture to comply with anti-trust laws to complete its $7 billion global merger with listed US truck braking specialist Wabco Holdings Inc.
June 10, 2020 / 10:45 AM IST
Global private equity players and auto component manufacturers may buy German auto parts giant ZF Friedrichshafen AG’s stake in Brakes India Private Limited — an Indian joint venture with the TVS Group.
ZF is said to exit the joint venture to comply with anti-trust laws to complete its $7 billion global merger with listed US truck braking specialist Wabco Holdings Inc, reported The Economic Times (ET). TVS could buy out the 49 percent share that ZF currently holds.
However, global private equity companies, international and a select set of homegrown auto component players may join to buy a large piece of the company. A formal divestment exercise will be launched in the coming weeks.
Moneycontrol could not independently verify the report.
ZF had told US regulators and the Competition Commission of India (CCI) that it was willing to divest its steering division and its 49% equity holding in Brakes India to fix overlapping products being created due to its global merger with Wabco.
Brakes India reported sales over Rs 5,000 crore in FY19. The company has a share of 55-60 percent in the braking systems market and is a supplier to manufacturers like Tata Motors, Ashok Leyland, Mahindra, Ford, Volkswagen, Volvo, Nissan, etc.