Automotive supplier Meritor announced the intention to acquire Siemens Commercial Vehicles Business for approximately €190 million in cash. The transaction is expected to close by calendar year-end, subject to regulatory approvals and customary closing conditions. Siemens commercial vehicles involves electric drive systems for buses, trucks, construction and off-road vehicles.
With approximately 200 employees across Germany, China and the United States, the Siemens Commercial Vehicles business develops, designs and produces high-performance electric drive systems. Product offerings include direct drive and transmission-based remote mount electric motors, inverters, software and related services which Meritor expects to be critical elements in the next generation of electric powertrains. These capabilities will enable Meritor to offer global customers a wider array of electrified product solutions across the commercial vehicle, transit, off-highway and specialty markets. Chris Villavarayan, Meritor's CEO and president, said: “As the urgency grows for zero carbon solutions, this highly
talented and skilled team, and leading electric product portfolio, strengthens Meritor’s business as we move toward the anticipated acquisition by Cummins.” Meritor is to be acquired by Cummins for approximently USD 3.7 billion and is expected to be completed by the end of 2022. Cummins consented to and is supportive of Meritor entering into the agreement and completing its acquisition of the Siemens Commercial Vehicles business. Meritor, supplier of drivetrain, mobility, braking, aftermarket and electric powertrain solutions for commercial vehicle and industrial markets is based in Troy, Mich., United States, and is made up of more than 9,600 diverse employees.