ZF Friedrichshafen, the German car-parts manufacturer based on the shores of Lake Constance in southern Germany, is to acquire TRW Automotive group for around 10
billion euros.

The US group said that the ‘merger’ with Germany’s third-largest car-parts maker will create “a global leader in the automotive supplier business with ‘pro forma’ combined sales of about 30 billion euros.” TRW will continue to operate as a separate concern.

A ZF spokesman said: “Together, ZF and TRW will be uniquely positioned to benefit from the mega-trends of the automotive industry on a global basis.” He added that the combined company will have 138,000 employees.

ZF announced last month that it had sold its 50% stake in steering-systems producer ZFLS to its joint-venture partner Bosch for an undisclosed sum. Media reports said that the sale of its ZFLS stake was a condition for the purchase of TRW.