To accelerate its development of electrified power solutions for commercial vehicles, Cummins Inc. has agreed to acquire Meritor Inc., a global provider of drivetrain, mobility, braking, aftermarket and electric powertrain solutions. According to the agreement, Cummins will pay $36.50 in cash per Meritor share for a total value of approximately $3.7 billion.
The acquisition is expected to position Cummins as one of the few companies able to provide integrated powertrain solutions across combustion and electric power applications. On Feb. 22, Cummins leadership stated that this “the right time to pursue this combination” as demand for decarbonized solutions accelerates. Tom Linebarger, Cummins' chairman and CEO, called the acquisition of Meritor "an important milestone" for his team.
“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,” Linebarger said in a statement.
For more on this agreement, read the full story at our sister brand FleetOwner.