Meritor Agrees to Settle Antitrust Lawsuit with Eaton

Meritor, Inc. (NYSE: MTOR) has announced that ZF Meritor LLC, a joint venture between a Meritor, Inc. subsidiary and ZF Friedrichshafen AG, and Meritor Transmission Corporation have reached a settlement agreement with Eaton Corporation (NYSE: ETN) relating to the antitrust lawsuit filed in 2006.

Under the terms of the agreement, Eaton has agreed to pay $500 million to ZF Meritor LLC.

Meritor will receive net proceeds of $209 million.

ZF Meritor LLC and Meritor Transmission Corporation have agreed to dismiss all pending antitrust litigation with Eaton. The settlement agreement is subject to ZF Friedrichshafen AG corporate approval, which is expected to occur in early July.

Meritor expects to receive proceeds from the settlement on or about July 15, 2014.

Tags: Meritor suit

Category: General Update