GERMANY: ZF's TRW plans hit a Bosch hitch - report
ZF's plans to acquire TRW have reportedly hit an obstacle caused by ZF's longer than expected negotiations to exit a joint venture with Bosch.
Bloomberg reported that ZF is seeking an agreement with Bosch on the sale of its stake in their 50-50 steering-systems joint venture before it can complete on TRW.
Bloomberg cited anonymous sources familiar with the negotiations who said that unraveling the Bosch JV is complex and also that key individuals are away for summer holidays.
According to the Bloomberg report, the Bosch joint venture has added complexity to the TRW deal because of a contractual non-compete clause on the steering systems business for whoever seeks to end the JV.
The report added that ZF aims to reach a deal with TRW in the first half of September, according to the sources.