Cummins will acquire Meritor for $3.7 billion. Meritor is a supplier of drivetrain, mobility, braking, aftermarket and electric powertrain solutions for commercial vehicle and industrial markets.
“The acquisition of Meritor is an important milestone for Cummins,” said Tom Linebarger, Cummins’s chairman and CEO, in a prepared statement. “Meritor is an industry leader, and the addition of their complementary strengths will help us address one of the most critical technology challenges of our age: developing economically viable zero carbon solutions for commercial and industrial applications. Climate change is the existential crisis of our time and this acquisition accelerates our ability to address it.
“This acquisition adds products to our components business that are independent of powertrain technology, and by leveraging our global footprint we expect to accelerate the growth in Meritor’s core axle and brake businesses,” said Linebarger.
Said Chris Villavarayan, Meritor CEO/president, in a statement:
“Our offerings will continue to play an important, strategic role as commercial vehicles transform to become electric and autonomous.”
The integration of Meritor’s people, technology, and capabilities will position Cummins as one of the few companies able to provide integrated powertrain solutions across combustion and electric power applications, according to the company. It said eAxles will be a critical integration point within hybrid and electric drivetrains. By accelerating Meritor’s investment in electrification and integrating development within its New Power business, Cummins expects to deliver market-leading solutions to global customers.
Source: Cummins
