HNHPF - Foxconn to acquire 50% stake in ZF Group's axle system assembly unit

2023-07-24 07:01:17 ET

• Foxconn Technology ( OTCPK:FXCOF ) is acquiring a 50% stake in ZF Friedrichshafen's (ZF Group) axle system assembly unit, ZF Chassis Modules, to form a joint venture aimed at expanding automotive and supply chain opportunities.
• ZF Chassis, which bundles passenger car axle systems assembly, has an enterprise value of about €1B, and the its sales are expected to exceed €4B in 2023, according to the companies.
• The partnership plans to expand the range of product offerings in the internal combustion engine and electric vehicle (ICE/EV) space, the companies added .
• "With this step, we are implementing our strategy to grow specific business areas of ZF with the support of external partners beyond current limits," said ZF CEO Holger Klein.
• ZF and Foxconn — the iPhone assembler which is formally known as Hon Hai Precision ( OTCPK:HNHAF ) ( OTCPK:HNHPF ) — expect the JV agreement to be effective within six to nine months after signing and following regulatory approvals.
• "We are also keen to explore more partnership opportunities with the ZF Group in the broader transportation and mobility space," said Foxconn Chairman and CEO Young Liu.

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