Cummins to acquire Meritor for USD3.7bn
By Bradley Osborne - 18th March 2022
USA – Cummins Inc of Columbus, Indiana plans to acquire Meritor Inc of Troy, Michigan, a manufacturer of drivetrain, mobility, braking, and electric powertrain components for commercial vehicles. The deal will expand Cummins’ portfolio significantly, entrenching its position as one of the major components suppliers in the commercial vehicle industry.
Under the terms of the acquisition agreement between the two companies, Cummins will pay USD36.50 in cash per Meritor share for a total transaction value of USD3.7bn, including assumed debt and net of acquired cash. Cummins intends to finance the transaction using a combination of cash on the company’s balance and debt.
