ArvinMeritor is selling its stakes in two joint ventures currently operated by its light vehicle chassis business.
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Together, the deals will result in the sale of 45% of the chassis systems business measured by 2008 sales, the supplier said.
ArvinMeritor has signed a binding letter of intent to sell its 57% stake in Meritor Suspension Systems Company (MSSC), a joint venture that manufactures and sells coil springs, torsion bars and stabiliser bars in North America, to its joint venture partner, a subsidiary of Mitsubishi Steel Manufacturing (MSM). That transaction is expected to close in the coming months, after receiving necessary regulatory clearances.
ArvinMeritor also announced that, earlier this month, it completed the sale of its 51% stake in Gabriel de Venezuela, which manufactures shock absorbers, struts, exhaust systems and suspension modules for countries including Venezuela, Colombia, Chile, Bolivia, Peru and Ecuador.
“We are pleased to announce these two divestitures, which represent important steps toward achieving our long-term strategic objective to focus on supplying the commercial vehicle on- and off-highway markets for both original equipment manufacturers and aftermarket customers,” said Arvin Meritor chairman, CEO and president Chip McClure.
“Our joint venture partners are strong companies and I am confident that they will focus on growing these businesses.
“We continue to concentrate on divesting the light vehicle chassis business, and we are pleased with the high level of interest we are continuing to see from potential buyers in the remaining segments.”
