Cummins Inc. on Tuesday said it intends to acquire a Michigan-based truck parts supplier to add axles and brakes for hybrid and electric powertrains to its portfolio in a $3.7 billion deal.
Meritor Inc. shares were rising 45% on the news Tuesday morning. Cummins' were up less than 1%.
The Indiana-based manufacturer of generators, diesel engines and other components will pay $36.50 in cash per Meritor share, a 48% premium over its Friday closing price. Cummins will assume debt and net of acquired cash in the agreement. The deal is expected to close before the end of 2022 and is subject to regulatory approval.
