WABCO takes full ownership of joint venture with Meritor
WABCO Holdings Inc., a global supplier of technologies and services to improve safety, efficiency and connectivity of commercial vehicles, announced that it will further expand its commitment and operations in the commercial vehicle market in North America by taking full ownership of the Meritor WABCO joint venture.
WABCO has signed an agreement to purchase Meritor, Inc.’s stake in the joint venture for US$ 250 million. The transaction is expected to close on October 1, 2017 and immediately prior to closing, Meritor will receive a final closing partnership distribution.
With this consolidation of its business organization and broader access to market in North America, WABCO attempts to further strengthen its relationships with commercial vehicle manufacturers and fleets through more simplified and direct channels.
The agreement to take full control of the joint-venture business will enable WABCO to offer its consolidated portfolio of products and systems including its air disc brakes, autonomous braking, electronic stability and active steering control systems, alongside advanced driver assistance systems (ADAS) and a full range of aerodynamic, air management and transmission automation control products in North America.
Following closure of the buyout, WABCO has agreed for Meritor to continue to be its exclusive distributor for a certain range of WABCO’s Aftermarket products in the U.S. and Canada, and its non-exclusive distributor in Mexico.
WABCO operates through its subsidiaries two facilities located in San Luis Potosi and Empalme, Sonora to manufacture hydraulic components, controls and brake systems. Meritor owns two production facilities in Nuevo Leon where the company manufactures axles, brakes and related components and assemblies, one of those also serves as distribution and engineering center.