Meritor To Buy Siemens' Commercial Vehicles Unit For Around 190 Mln Euros

(RTTNews) - Meritor, Inc. (MTOR), a maker of automobile components, said on Friday that it has entered into a deal with Siemens AG to acquire the latter's Commercial Vehicles Electric Propulsion business for around 190 million euros in cash.

With a presence in Germany, China, and the U.S., Siemens Commercial Vehicles business is engaged in the production of high-performance electric drive systems.

The transaction, which provides Meritor with a complementary product portfolio to expand its technical capability and offerings, is expected to be closed by this calendar year-end.

Chris Villavarayan, Meritor's CEO, said: "The Siemens Commercial Vehicles business offers capabilities and technology that will enhance our ability to offer superior electric solutions to the global commercial vehicle market. 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."

According to a merger agreement announced earlier, engine maker Cummins had agreed to acquire Meritor. Cummins has supported Meritor's move to buy Siemens' commercial vehicles arm.