The board recommendation is qualified by regulatory approvals: Knorr-Bremse says it is confident of receiving all necessary merger control approvals and it has been “in good dialogue” with relevant authorities over the past weeks.
Haldex will help to speed this process by providing all necessary information to complete filings. Should the acceptance level condition have been met, but merger clearance not been obtained at the end of the acceptance period, KnorrBremse intends to extend the acceptance period – in which case, it says, investors who have tendered into the offer will retain the option to withdraw.
“We appreciate that the Haldex Board has highlighted the attractiveness and the superior economics of our offer to shareholders,” says Klaus Deller, chairman of the executive board of Knorr-Bremse.
“We are convinced that the combination of Knorr-Bremse and Haldex will benefit Haldex’ employees and customers alike,” he says.
“Combining competencies in the field of trucks and trailers has a compelling industrial logic as we expand our position as one of the leading systems suppliers in the industry. In addition, it will allow both companies to create an even broader, competitive product range, paving the way for profitable growth.”
Deller continues: “It is part of our DNA to address challenges of the future. The commercial vehicle sector is transforming towards autonomous driving and we will be a driving force in developing cutting-edge technologies. We intend to bundle our joint global trailer business under the Haldex roof going forward. The combination of Haldex and Knorr-Bremse will thus not only create superior value for customers and business partners, but also offer attractive prospects for both companies and their employees.”
Knorr-Bremse’s offer is subject to other conditions, including an acceptance ratio resulting in Knorr-Bremse becoming owner of more than 50% of all outstanding Haldex shares.
Knorr-Bremse was in a bidding war for Haldex with ZF, until the latter withdrew its offers on 5 October.