TROY, Mich. (Sept. 1, 1999) — Meritor Automotive and ZF Friedrichshafen AG are clear to begin their joint venture, ZF Meritor LLC, after the deal received regulatory approval.
The new company, based at the former Meritor transmission manufacturing plant in Laurinburg, N.C., will produce technologically advanced medium- and heavy-duty transmission components and systems for original equipment manufacturers and the aftermarket in North America. Meritor and ZF each own 50% of the joint venture.
Meritor transferred to the new company the assets of its heavy transmission business, and its 60% interest in Meritor Clutch Co., while ZF contributed transmission technology and made a cash payment to Meritor.
As a result of the transaction, Meritor said it expects to record a one-time gain of approximately $0.25 per share in its fourth quarter ending Sept. 30, 1999.
Based in Friedrichshafen, Germany, ZF is the market leader in Europe and world’s second-largest producer of commercial vehicle transmissions. Troy, Mich.-based Meritor is a global supplier of a broad range of components and systems for commercial, specialty, and light vehicle OEMs and the aftermarket.
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