LIVONIA, Mich. (AP) — ZF Friedrichshafen AG is buying Michigan-based TRW Automotive for approximately $11.74 billion.
The German company will pay $105.60 per TRW share, a 2 percent premium to its Friday closing price of $103.85.
The companies put the transaction's value at about $13.5 billion.
TRW Automotive Holdings Corp., based in Livonia, Michigan, will be a separate division within ZF.
The deal will create an automotive supplier business with combined sales of approximately $41 billion and 138,000 employees.
Both companies' boards approved the transaction, which will be financed with available cash and debt financing. There's no financing condition.
The deal is targeted to close in the first half of 2015. It still needs approval from TRW shareholders.
TRW's stock declined 99 cents to $102.86 in Monday morning trading.
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