Tenneco signs definitive agreement to acquire Federal-Mogul

The acquisition is expected to result in complementary product categories, stronger customer base and greater geographical coverage for the combined company

Tenneco has signed a definitive agreement with Icahn Enterprises to acquire auto component maker Federal-Mogul for USD5.4 billion, the company announced in a press release on 10 April. The transaction will be a combination of USD800 million in cash, 29.5 million of voting (5.7 million shares) and non-voting stock and assumption of debt. The agreement allows Tenneco to reduce the number of shares of Class B Non-Voting common stock by up to 7.3 million shares and increase the cash consideration proportionately at the closing. Tenneco said the acquisition is expected to close in the second half of 2018, subject to regulatory and shareholder approvals and other customary closing conditions.