Wabco Holdings has completed the transaction to purchase Meritor's stake in the Meritor Wabco joint venture and take full ownership of the enterprise.
In a statement, Wabco said the acquisition demonstrates its commitment to consolidate its operations in North America and unify its businesses under one team and brand, "unlocking further value for customers and offering seamless access to the full spectrum of [our] industry-leading safety and efficiency technologies".
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With the completion of the transaction, it would now fully integrate the former Meritor Wabco operations into its North America Business Unit.
"Taking full control of the joint venture business is a major milestone in expanding our operations in North America," said Jon Morrison, Wabco president, Americas.
"With this consolidation of its business organisation and broader access to market in North America, [we] will further strengthen [our] connectivity to commercial vehicle manufacturers and fleet operators through more simplified and direct channels. Operating fully under the Wabco brand, the local business will become even more agile, efficient and customer-focused."
The former joint venture employs approximately 200 and booked sales of US$300m in fiscal year 2016. It currently sells and distributes a range of Wabco safety and efficiency technologies for commercial vehicles in North America.
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By GlobalDataWabco acquired Meritor's stake for US$250m.
Meritor will nonethless continue to be exclusive distributor for some of Wabco's aftermarket products in the US and Canada, and its non-exclusive distributor in Mexico.
Both parties now have options to terminate the distribution arrangements at certain points during the first three and half years for between $225m and $265m based on earnings.
The agreement to take full control of the joint venture business will enable Wabco to offer a consolidated range of products and systems, including air disc brakes, autonomous braking, electronic stability and active steering control systems, advanced driver assistance systems (ADAS) and aerodynamic, air management and transmission automation control products in North America.
