Taiwan's Foxconn to take 50% stake in ZF axle system unit

Taiwan's Foxconn will acquire a 50% stake in ZF Group's axle system assembly unit, creating a joint venture (JV) aimed at growing automotive and supply chain opportunities, the companies said on Monday.

The deal, which values ZF's Chassis Modules GmbH at €1 billion ($1.11 billion), will allow the companies to expand the range of product offerings in the internal combustion engine and electric vehicle space, they said in a statement.

"With this step, we are implementing our strategy to grow specific business areas of ZF with the support of external partners beyond current limits," said ZF CEO Holger Klein.


The JV is expected to become effective within six to nine months of signing pending regulatory approvals.