Tenneco Shareholders Approve Federal-Mogul Acquisition
Tenneco Inc.’s shareholders have approved by a margin of more than 90% the company’s $5.4 billion deal to acquire Federal Mogul LLC. The purchase was announced in April.
Tenneco expects to close the sale on Oct. 1. The two companies currently compete in both the original equipment powertrain and replacement parts markets. The merged businesses will be restructured into two freestanding companies, with each one focused on one of the two markets.
The future powertrain technology company will generate about $10.7 billion in annual sales of original-equipment components for piston engines, pollution controls and electrified powertrains. The company will supply companies that make light-duty, commercial, industrial and off-highway vehicles.
The new aftermarket and ride performance company will account for annual sales of about $6.4 billion, with roughly 60% of volume derived from the aftermarket and 40% from original-equipment customers. The company’s branded products will include Champion, Clevite, Fel-Pro, Monroe, Moog, Walker and Wagner.
Tenneco announced in July that the powertrain company will be headed by Roger Wood, who retired as CEO of Dana Holding Corp. three years ago. The aftermarket company will be led by Brian Kesseler, Tenneco’s current CEO.
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