ZF Friedrichshafen AG, a global technology group and supplier of mobility systems for passenger cars, commercial vehicles and industrial solutions, has announced that shareholders of WABCO have approved ZF’s proposed acquisition of the company. The $7 billion deal was first announced in March.

In a shareholder vote on June 27, 68.44% of WABCO’s outstanding share capital voted in favor of the transaction agreed by ZF and WABCO in late March. Under the terms of the transaction, ZF will acquire all outstanding shares of WABCO for $136.50 per share in cash, subject to regulatory approvals and other customary closing conditions. 

Wolf-Henning Scheider, CEO of ZF, said, “It is a confirmation of our strategy that WABCO shareholders have approved this important transaction. Together with WABCO, ZF can form an integrated systems provider for commercial vehicle technology, creating long-term value and security for our customers, employees and shareholders. We will be shaping the future of technologies and services for efficiency, safety, automation and connectivity in the commercial vehicle sector together with the WABCO management.”

ZF expects to be able to close the transaction in early 2020. At that time, shares of WABCO’s common stock will no longer be traded on any public market. 

The transaction is subject to regulatory approvals and other customary closing conditions. ZF expects to close the transaction in early 2020. Due to the cash flow profile of both parties, ZF said it expects to reduce financial leverage significantly again following the completion of the transaction.