FILE PHOTO: Foxconn logo is seen in this illustration taken, May 2, 2023. REUTERS/Dado Ruvic/Illustration/File Photo
BERLIN (Reuters) - Taiwan's Foxconn will acquire a 50% stake in ZF Group's axle system assembly unit, creating a joint venture 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 euros ($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 joint venture agreement is expected to become effective within six to nine months of signing pending regulatory approvals.
($1 = 0.9029 euros)
(Reporting by Alexander Huebner, Writing by Friederike Heine, Editing by Rachel More)
