Siemens sells Commercial Vehicle business to Meritor
Siemens is selling its Commercial Vehicles business with electric drive systems for commercial vehicles such as buses and trucks, construction and off-road vehicles to US vehicle supplier Meritor for 190 million euros.
The purchase price is approximately 190 million euros, subject to working capital adjustments. The transaction is expected to close by the end of this calendar year, subject to the relevant regulatory approvals. Siemens Commercial Vehicles employs approximately 200 employees across Germany, China and the United States, who develop, design and produce high-performance electric drive systems.
“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,” said Ralf P. Thomas, Chief Financial Officer of Siemens. “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,” added Chris Villavarayan, CEO and president of Meritor, adding: “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 plans to integrate Commercial Vehicles’ motor, inverter and systems technology to enhance the development of next-generation electric drive systems. For its part, Meritor is reportedly on the verge of being acquired by US engine maker Cummins. The price stands somewhere around USD 3.7 billion. The transaction was now also unanimously approved by Cummins shareholders and is expected to be completed by the end of 2022. However, the Special Meeting of Shareholders scheduled to be held on May 26, 2022 is still pending.
Cummins has been expanding their intellectual properties of late, with the investment in Sion Power late last year, as well as a fuel cell truck cooperation with Scania.
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