MUMBAI (Bloomberg) -- Amtek Auto Ltd., an Indian car parts maker, is among companies in talks to acquire TRW Automotive Holdings Corp.’s suspension business, people familiar with the matter said.
TRW, based in the Detroit suburb of Livonia, could get about $500 million for the unit, two of the people said. The sale has also drawn interest from other companies outside India, one person said, asking not to be identified as the information is private.
An acquisition could help New Delhi-based Amtek gain technology and expand overseas. Amtek said in November it agreed to buy three foreign companies, including two in Europe, with combined sales of more than 20 billion rupees ($321 million).
TRW agreed to sell the operations in order to receive European antitrust approval for its acquisition by Germany’s ZF Friedrichshafen AG, according to a March 12 regulatory filing. Colleen Hanley, a spokeswoman for TRW Automotive, declined to comment till a buyer is confirmed. Amtek Senior Managing Director John Flintham didn’t answer two phone calls seeking comment.
Amtek, which manufactures components including forgings and aluminum castings, has seen its debt more than quadruple from 2010 to 175.9 billion rupees, according to data compiled by Bloomberg. KKR & Co.’s credit arm agreed in November to provide 235 million euros ($258 million) of long-term financing to Amtek’s international unit to replace an existing bridge loan and consolidate the company’s debt.
ZF’s purchase of TRW will put it in position to surpass Japan’s Denso Corp. and Germany’s Continental AG to become the world’s second-largest maker of auto parts, trailing only Robert Bosch GmbH.