TRW shareholders approve $12.4 billion merger with ZF

TRW shareholders approve $12.4 billion merger with ZF

One regulatory body approves the pairing, several more approvals still needed.

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November 21, 2014

Friedrichshafen, Germany, and Livonia, Michigan – TRW Automotive Holdings Corp.’s shareholders have approved that company’s merger with Germany’s ZF, a major hurdle in combining the two giant automotive suppliers. At a special meeting of TRW's stockholders, stockholders representing 79% of TRW's shares outstanding voted in favor of adopting the proposed merger agreement. Overall, 81% of TRW's stockholders participated in the vote.

"The approval is a milestone in the acquisition process of TRW," said ZF CEO Stefan Sommer. "We are very glad that the TRW stockholders have supported our plans with such a clear majority. This adds to the positive feedback we have received from customers and employees of both companies."

John C. Plant, chairman and CEO of TRW, said, "We are pleased that the TRW stockholders have approved the transaction, which provides significant benefits for our stockholders who will receive full and certain value for their shares, as well as for our employees, customers and communities, all of which will reap the benefits of being part of larger, more diversified organization that is well positioned to serve the automotive industry."

Under the terms of the merger agreement, ZF will acquire TRW in an all-cash transaction valued at approximately $12.4 billion based on equity value.

On November 14, 2014, ZF and TRW received notice from the Committee on Foreign Investment in the United States ("CFIUS") that CFIUS had concluded its review of the transaction and determined that there are no unresolved national security concerns with respect to the proposed acquisition by ZF of TRW.

The transaction remains subject to further customary closing conditions, including antitrust clearances. ZF and TRW continue to expect the transaction to be completed in the first half of calendar year 2015.

Source: TRW