TROY, Mich. — Eaton will be required to pay ZF Meritor $500 million as part of a settlement agreement relating to an antitrust lawsuit filed in 2006.
ZF Meritor is a joint venture between Meritor and ZF Friedrichshafen AG. Meritor announced this morning it will receive net proceeds of $209 million as a result of the settlement.
The settlement agreement is subject to ZF Friedrichshafen AG corporate approval, which is expected to occur in early July.
“We have reached an agreement with Eaton that we believe is in the best interests of the Company and our shareholders,” said Ike Evans, chairman and CEO of Meritor. “We’ll use these proceeds to accelerate our efforts to achieve our balance sheet goals under our M2016 plan. This is an important outcome for Meritor that delivers significant benefits to the Company, our shareholders and our customers. We are successfully putting this lawsuit behind us as we continue to execute on our plan to drive value for all shareholders.”