German ZF Acquires U.S. TRW

German leading auto part manufacturer ZF Friedrichshafen AG announced on Sep. 15 that it has acquired U.S. TRW Automotive. The estimated sum of transaction (incl. debts) is about USD 13.5 billion. ZF said that it expects to reinforce its R&D and investment in new technology like auto driving. After the acquisition, the top 3 largest auto part manufacturers will be all from Germany, and the scale of ZF will climb to the 2nd largest place around the world.

The current revenue of ZF is ranked the 9th place in the auto parts industry. After acquiring TRW, ZF’s revenue in the U.S. will be multiplied by 2.3 to reach EUR 6.5 billion and the revenue in China will be also multiplied by 1.8 to reach EUR 5.4 billion. ZF’s total revenue will increase to EUR 30 billion, outpacing Japanese DENSO to be the 3rd largest manufacturer in the world, only second to German Bosch(annual revenue in 2013: EUR 46 billion) and German Continental (annual revenue in 2013: EUR33.3 billion).