Germany-based ZF Friedrichshafen plans to sell its stake in a steering business joint venture to Robert Bosch, which would allow it to acquire TRW Automotive, according to the Wall Street Journal. Selling its stake in the joint venture would reportedly help ZF avoid antitrust obstacles when it tries to acquire TRW.
An acquisition could be announced as soon as next week, according to the Journal. An acquisition would reportedly value TRW above $10 billion.
TheStreet Ratings team rates TRW AUTOMOTIVE HOLDINGS CORP as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:
"We rate TRW AUTOMOTIVE HOLDINGS CORP (TRW) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its increase in net income, revenue growth, solid stock price performance, attractive valuation levels and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company shows weak operating cash flow."
Highlights from the analysis by TheStreet Ratings Team goes as follows: