Tenneco stockholders approve acquisition of Federal-Mogul, including 15 plants in Mexico
Illinois-based manufacturer Tenneco Inc. announced that at a special meeting held on September 12, stockholders approved all of the proposals necessary to complete the acquisition of Federal-Mogul LLC.
With more than 85% of eligible shares voting, Tenneco stockholders approved a proposal to adopt an amended and restated certificate of incorporation that creates a new class of non-voting common stock, and reclassifies existing common stock as voting common stock, as well as a proposal to approve the issuance of stock consideration to be paid for the acquisition of Federal-Mogul, and a proposal to approve the amended and restated 2006 Tenneco Inc. long-term incentive plan to change the number of shares available for issuance.
Federal Mogul operates 15 plants in Mexico. Its Powertrain division operates nine production sites, located in Ciudad Juarez, Aguascalientes, Queretaro, Naucalpan de Juarez, Tepotzotlan and Mexico City. Three more manufacturing facilities are located in Puebla.
Those plants manufacture a variety of products including valve train components, bearings, pistons, spark plugs, sealings and connectors.
Its motor parts division operates six production sites in Mexico, located one each in Los Reyes, Tepotzotlan, Tultitlan and Itztapalapa (Mexico City). Another two plants are located in Ciudad Juarez.
Those facilities manufacture components for clutch, brake and suspension systems, as well as filters and wipers.
All three proposals received the support of over 90% of the shares voted, including the proposal to issue stock for the acquisition of Federal Mogul, which was approved by approximately 98% of the shares voted.
“We are very pleased with the results of the meeting and the strong vote of confidence from our stockholders,” said Tenneco Chairman Gregg Sherrill. “This is a major step forward in the creation of two strong leading global companies, each in an excellent position to capture opportunities unique to their respective markets, and realigned in a way to unlock shareholder value.”
During the meeting, the company announced that it had received the regulatory approvals required to close, and that it expects the Federal-Mogul acquisition will close on October 1, 2018.