To offer a wider array of electrified product solutions for commercial vehicles, Meritor has entered into an agreement with Siemens to acquire its commercial vehicles business for approximately $203 million in cash.
With approximately 200 employees across Germany, China and the United States, the Siemens Commercial Vehicles business develops, designs and produces high-performance electric drive systems. Product offerings include direct drive and transmission-based remote mount electric motors, inverters, software and related services which Meritor expects to be critical elements in the next generation of electric powertrains.
These capabilities will enable Meritor to offer global customers a wider array of electrified product solutions across the commercial vehicle, transit, off-highway and specialty markets.
"As the urgency grows for zero carbon solutions, this highly talented and skilled team, and leading electric product portfolio, strengthens Meritor's business as we move toward the anticipated acquisition by Cummins,” said Chris Villavarayan, Meritor's CEO and president, in a press release.
Cummins announced in February it was buying Meritor to accelerate electrification development. Cummins consented to and is supportive of Meritor entering into the agreement and completing its acquisition of the Siemens Commercial Vehicles business, officials said.
The transaction is expected to close by the end of the year, subject to regulatory approvals and customary closing conditions.