German automotive parts supplier ZF Friedrichshafen is set to sell its South African subsidiary Auto Industrial Brake & Chassis Holding Johannesburg (AIBC) to Investor Trinitas.
AIBC contains a forge and a foundry and produces components for the automotive industry, including brake disks. It currently operates four plants with roughly 900 employees at the Johannesburg location.
As a part this transaction, Investor Trinitas will acquire the plants of AIBC. The contracting parties have agreed not to disclose the purchase price.
This transaction is subject to the approval of the South African cartel authorities and is expected to be complete by 31 December 2013.
In 1999, ZF has signed a joint venture contract for AIBC to enter the South African components market.
ZF had taken over the entire company, which operated as a local supplier to ZF's Car Chassis Technology division in 2006. Recently, ZF has strategically realigned its business and sold the subsidiary.