German auto parts giant ZF Friedrichshafen AG is looking to exit Brakes India, its profitable Indian joint venture with TVS Group, a media report said.
A formal divestment exercise is likely to be launched in coming weeks, The Economic Times reported, citing people in the know. The German company owns a 49% stake in the venture while TVS holds the remaining.
The divestment will be done in a bid to comply with antitrust laws to complete ZF’s $7 billion global merger with listed US truck braking specialist Wabco Holdings Inc.
Even though TVS could buy out the partner, global private equity players and international and homegrown auto component players are expected to join the fray to grab a large piece of India’s largest privately held auto components company that clocked over Rs 5,000 crore in sales for 2018-19, the report said.
ZF has informed the US regulators and the Competition Commission of India (CCI) that it is willing to divest its steering division and its 49% equity holding in Brakes India.
