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BorgWarner to acquire Haldex Traction Systems

ABR Staff Writer Published 20 December 2010

BorgWarner, a provider of engineered components and systems for vehicle powertrain applications worldwide, has signed an agreement to acquire the Traction Systems division of Haldex Group, a provider of innovative products for the global vehicle industry headquartered in Stockholm, Sweden, for $205m.

The acquisition is expected to accelerate its growth in the global all-wheel drive (AWD) market as it continues to shift toward front-wheel drive (FWD) based vehicles.

The acquisition will add FWD/AWD technologies, with a strong European customer base, to the company's existing portfolio of front and rear-wheel drive based products.

BorgWarner chairman and CEO Timothy Manganello said this acquisition supports their continuing strategy to be a global technology leader in providing powertrain solutions.

"With the acquisition of Haldex Traction Systems, BorgWarner has added a strong and well-respected brand of all-wheel drive products that will compliment our current portfolio as well as our customer and geographic mix," Manganello said.

The acquisition is expected to be completed in the first quarter of 2011 subject to standard regulatory approvals.