Cummins will buy Meritor for $3.7B

Cummins Inc., which is rapidly transforming from solely a leading maker of diesel engines into electric powertrains and zero-emissions technologies, said Tuesday it will pay $3.7 billion in cash to acquire Meritor Inc., merging their distinct traditional and advanced technology components.

It is unclear whether the Meritor name will live on. Both Cummins and Meritor, spun off from Rockwell International in 1997, are more than a century old…

The size of the transaction is the same amount that Volkswagen AG’s Traton Group paid to acquire Navistar International Corp. last year. BorgWarner Inc. paid $3.3 billion to acquire the assets of one-time No. 1 automotive supplier Delphi Technologies in 2020 after Delphi split off its autonomous and advanced technologies unit to create Aptiv PLC. Only the $7 billion merger of ZF and Wabco Holdings in 2020 was bigger.