Rane Group is awaiting more clarity and details on the proposed transaction between German auto parts major ZF and its U.S. rival TRW Automotive. The proposed deal may have a bearing on Rane group’s ongoing JV with TRW.
Last week, ZF Friedrichshafen agreed to acquire U.S. auto parts maker TRW Automotive for about $11.7 billion.
TRW makes engine and safety parts such as seat belts and air bags. ZF, a closely held German engineering giant, specialises in transmissions and steering systems, as also some other automotive parts. This transaction is expected to be completed by the first-half of 2015.
Rane Group and TRW have a 50:50 joint venture, Rane TRW Steering Systems Ltd., for making steering systems, safety belts and airbags. While airbag business has been identified as a key growth area, other potential growth areas were also being evaluated.
It remains to be seen whether there will be any change or realignment in the Rane-TRW JV as a result of the merger of two global auto parts majors.
ZF has also been operating in India through its own subsidiaries.
When contacted for the possible impact of the ZF-TRW deal, Harish Lakshman, Director, Rane Holdings Ltd., said: “It is too premature to comment on the TRW ZF transaction. We are also awaiting details of the transactions. Details will be known in early 2015.”
