BackAmtek said in talks to buy TRW Automotive suspension arm
TRW, based in the Detroit suburb of Livonia, could get about $500 million for the unit, two of the people said
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Mumbai: Amtek Auto Ltd., the Indian car parts maker, is among companies in talks to acquire TRW Automotive Holdings Corp.’s suspension business, people familiar with the matter said.
TRW, based in the Detroit suburb of Livonia, could get about $500 million for the unit, two of the people said. The sale has also drawn interest from other companies outside India, one person said, asking not to be identified as the information is private.
An acquisition could help New Delhi-based Amtek gain technology and expand overseas. Amtek said in November it agreed to buy three foreign companies, including two in Europe, with combined sales of more than Rs2,000 crore ($321 million).
TRW agreed to sell the operations in order to receive European antitrust approval for its acquisition by Germany’s ZF Friedrichshafen AG, according to a 12 March regulatory filing. Colleen Hanley, a spokeswoman for TRW Automotive, didn’t answer phone calls and an e-mail outside regular office hours. Amtek senior managing director John Flintham didn’t answer two phone calls seeking comment.
Amtek, which manufactures components including forgings and aluminum castings, has seen its debt more than quadruple from 2010 to Rs17,590 crore, according to data compiled by Bloomberg. KKR & Co.’s credit arm agreed in November to provide €235 million ($258 million) of long-term financing to Amtek’s international unit to replace an existing bridge loan and consolidate the company’s debt.
ZF’s purchase of TRW will put it in position to surpass Japan’s Denso Corp. and Germany’s Continental AG to become the world’s second-largest maker of auto parts, trailing only Robert Bosch GmbH. Bloomberg
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