BERLIN, July 24 (Reuters) - Taiwan's Foxconn (2317.TW) will acquire a 50% stake in ZF Group's (ZFF.UL) axle system assembly unit, creating a joint venture aimed at growing automotive and supply chain opportunities, the companies said on Monday.
The joint venture with Foxconn is part of ZF's strategy to grow specific business areas beyond current limits with external partners' support, the German company's chief executive, Holger Klein, told Reuters.
"This business can grow very quickly, but it has relatively low margins.
It needs fresh capital," which is why ZF had been looking for a partner, said Klein.
The joint venture agreement is expected to become effective within six to nine months of signing pending regulatory approvals.
Persons:
Foxconn, Holger Klein, Klein, Alexander Huebner, Friederike Heine, Miranda Murray, Rachel More
Organizations:
ZF Group's, Foxconn, Reuters, ZF, Thomson
Locations:
BERLIN, Berlin, Munich, China