EU: Haldex rejects higher Knorr-Bremse offer on regulatory concerns

Swedish braking systems maker Haldex has backed a $617 million takeover offer from German car parts firm ZF Friedrichshafen, even though it is less than a rival bid from Germany’s Knorr-Bremse.

Haldex said on Monday its board had unanimously recommended shareholders accept ZF’s offer because there was greater certainty it would go through. ZF has received clearances from antitrust regulators, while Knorr-Bremse’s bid ran the risk of not clearing all regulatory hurdles, Haldex said.

Knorr-Bremse, which makes braking systems for rail and commercial vehicles, last week raised its offer to 125 crowns per share, while ZF upped its bid to 120 crowns, corresponding to 5.53 billion crowns and 5.29 billion crowns, respectively.

Several German car parts makers have been looking to buy Haldex, keen on its expertise in brakes for trailers in particular as they seek to develop integrated autonomous driving systems for commercial vehicles.

Haldex shares closed up 0.4 percent at 128 crowns – above both bids and signalling some investors are hopeful of a still higher offer.

“ZF has announced that it has received all necessary regulatory approvals and clearances, whereas there is a very real and material risk that Knorr-Bremse’s offer would fail to complete,” Haldex’s board said in a statement.

Full Content: Reuters

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