Cummins expects to finalize Meritor deal this week

COLUMBUS, Ind. — Cummins Inc. expects to finalize this week a $3.7 billion deal to acquire an automotive parts supplier that used to be a major employer in Columbus after receiving regulatory approval and the green light from shareholders.

Cummins said Tuesday that it expects to close on an agreement to acquire Michigan-based Meritor Inc. for $36.50 in cash per share, a 48% premium on Meritor’s closing price on Feb. 18. The deal is being bankrolled through a combination of cash and debt.

Meritor shareholders overwhelmingly voted in favor of Cummins’ acquisition bid in May, according to filings with the U.S. Securities and Exchange Commission.

“The companies are working together to complete the acquisition this week, as we have received all regulatory approval to close the transaction,” Cummins President and CEO Jennifer Rumsey told financial analysts during the company’s earnings conference call on Tuesday.

For the complete story, see Wednesday’s Republic.