GERMANY: Brose interest in acquiring VDO division
German supplier Brose would be interested in acquiring the Electronic Motor Drives division of Siemens VDO.
According to Automobilwoche, Brose has visited a number of VDO Electronic Motor Drives plants in Würzburg, as well as plants in North America, Asia and the Czech Republic. The division reportedly employs around 3,500 people at eleven locations.
Brose is the most important customer of the Würzburg plant. It buys window lift mechanisms as well as other components, including ABS motors, cooling modules, air-conditioning units, seat belts and electric steering.
Brose is the third supplier to express an interest in acquiring the VDO business. Siemens had been planning a partial IPO of Siemens VDO, but this generated interest from two other major component suppliers, Continental and TRW, who said they would like to acquire the company in its entirety. US private equity firm Blackstone also expressed an interest.
According to the Financial Times Deutschland, Siemens VDO is expected to attract a price of tens of billions of euros. VDO has a turnover of around EUR10bn. Siemens had been expecting to raise around EUR2bn from an IPO.