WABCO India jumps on acquisition

about 2 months ago
No Image

WABCO India rose almost 11.5% to Rs.7082.65 and remains among the top five gainers on the BSE. Stock has been gaining for the last 4 days and has risen 10.30% in the period. Its 52-week high stands at Rs.8319.90.

The stock price has surged on news that it’s parent company, WABCO Holding, has agreed to be acquired by German car-parts maker ZF Friedrichshafen AG for roughly $7 billion, a 6.5% discount to Wabco’s previous valuation.

The Wabco deal comes four years after ZF paid $12 billion for TRW Automotive as part a strategy to build on its strong position in conventional transmissions and chassis to become a high-tech systems provider for automotive manufacturing companies.

The deal is expected to get closed by early 2020.

For the Indian markets, this means the stock will remain in focus because as per SEBI rules, ZF will soon have to make an open offer for the public shareholders.

Popular Comments

No comment posted for this article.