New Delhi:German multinational conglomerate corporation Siemens on Friday agreed to sell its Commercial Vehicles business, a Siemen’s Portfolio Company, to Meritor. The purchase price totals around 190 million Euro, subject to working capital adjustments. However, closing is expected, subject to regulatory approvals, by the end of this calendar year, stated a company release.
“Commercial Vehicles is another success story for our Portfolio Companies’ concept. We have turned Commercial Vehicles into a profitable business and now found the ideal new owner that is a great strategic fit. It is a win-win for both Siemens and Commercial Vehicles. Our value creation through the portfolio companies continues in full swing and today is another milestone to optimize our portfolio,” said Ralf P. Thomas, CFO, Siemens AG.
For Meritor, the acquisition of Commercial Vehicles furthers its goal of embracing and contributing to a more sustainable future by designing and manufacturing products that accelerate electrification for commercial vehicles. Meritor plans to integrate Commercial Vehicles’ motor, inverter and systems technology to enhance its development of next-generation ePowertrains, it said.
“The acquisition of Commercial Vehicles enhances our Blue Horizon brand by expanding our electric vehicle product capability and strengthening the Meritor team with important technical capabilities,” said Chris Villavarayan, CEO and president, Meritor. “We are impressed with the accomplishments of Commercial Vehicles’ leadership and employees and look forward to them becoming an important part of our team.”
In February, Meritor announced that it would be acquired by Cummins subject to Meritor shareholder approval and required regulatory approvals. The Board of Directors of Meritor has unanimously approved the agreement with Cummins and recommends that Meritor shareholders vote in favor of the transaction at the Special Meeting of Shareholders scheduled to be held on 26 May 2022. The closing is expected to occur during this calendar year, stated the company.
Siemens Commercial Vehicles is a leading supplier of innovative systems, solutions and products for all types of medium and heavy-duty electric commercial vehicles. The CV business develops, designs and produces high-performance electric drive systems for commercial vehicles such as buses and trucks, construction vehicles and off-road vehicles.
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