ArvinMeritor sells 57% stake in Meritor Suspension to Mitsubishi Steel

ArvinMeritor, Inc., a supplier of integrated systems, modules, and components to the motor vehicle industry, has completed the sale of its 57% stake in its joint venture Meritor Suspension Systems Company to Mitsubishi Steel Mfg. Co., Ltd. for approximately $13 million. Both ArvinMeritor and Meritor are based in the US.

Meritor is a manufacturer and seller of automotive coil springs, torsion bars, stabilizer bars and assemblies for automobiles, while Mitsubishi Steel is a Japan-based manufacturer of automotive parts, steel castings and magnetic materials.

Announcement (June 24, 2009):

ArvinMeritor has entered into a binding letter of intent to sell its entire 57% stake in Meritor to a subsidiary of Mitsubishi Steel.

Deal Type    Acquisition
Sub-Category Majority Acquisition
Deal Status  Completed: 2009-10-30

Deal Participants

Target (Company)   Meritor Suspension Systems Company
Acquirer (Company) Mitsubishi Steel Mfg. Co., Ltd.
Vendor (Company)   ArvinMeritor, Inc.

Deal Rationale

The sale represents an important step towards achieving ArvinMeritor's long-term strategic objective to focus on supplying the commercial vehicle on- and off-highway markets for both original equipment manufacturers and aftermarket customers.

% Acquisition 57%

Related terms: acquisition, automotive, japan, joint venture, manufacturer, steel