“We will take care of white spots”: ZF thinks after debt reduction back to acquisitions

ZF Friedrichshafen

“If we spot white spots, then we’ll take care of it.”


(Photo: AP)

The auto supplier ZF Friedrichshafen can imagine larger takeovers after reducing its debt burden. The US billion purchase TRW is now almost completed, said since December acting CEO Konstantin Sauer on Sunday (local time) in the context of the US auto show in Detroit. “Lower financial liabilities are raising our equity ratio and expanding the financial scope for further growth, for example through acquisitions,” said Sauer. ZF had bought the US supplier TRW 2015 for about 12.4 billion US dollars and financed this to a large extent with debts.

“If we spot white spots, then we’ll take care of it,” said Sauer. In software development, for example, ZF is currently looking at how to increase capacity in the short term. Sauer did not want to question the fact that he could convince the supervisory board, which according to media reports is currently more cautious, of the sense of acquisitions. “If we have good arguments – why not?” The debt burden will continue to fall in 2018.

An IPO of the automotive supplier from Lake Constance, however, is not within reach. “In my time as chief financial officer, since 2010, I have never set up a financial plan that would have included an IPO,” said Sauer, who currently holds the office of Chief Executive Officer and Chief Financial Officer. Ex-chief executive Stefan Sommer had left the company in December after a dispute with municipal shareholders. How long he remains at the helm of ZF is the responsibility of the supervisory body, said Sauer.