The multibillion-dollar takeover news of the auto parts suppliers Meritor MTOR and Tenneco TEN made big headlines last week. In two landmark deals that have jolted the industry, engine maker giant Cummins CMI is set to acquire Meritor for $3.7 billion, while Apollo Funds will buy Tenneco for $7.1 billion. Apart from the announcement of these blockbuster deals, earnings release by used vehicle e-retailer Carvana CVNA and automotive replacement parts manufacturer Standard Motor SMP also made to the top stories.

Meanwhile, the European Automobile Manufacturers Association released January 2022 data for commercial car registrations last week. The European Union (EU) commercial vehicle market contracted 11.1% in January to 125,292 units, representing the seventh straight month of decline. The decline largely stemmed from sluggish sales of new vans. Three of the four key EU markets — namely Spain, France and Germany — witnessed a decline, with Spain recording the steepest drop of 20.1% year over year. While registrations in France and Germany inched down 17% and 3.1%, respectively, Italy’s sales remained almost unchanged with the comparable year-ago period.

Last Week’s Top Stories

1. Cummins announced that it will acquire Meritor in a $3.7-billion deal to reinforce its electric and hybrid vehicle parts offerings. The transaction is subject to customary closing conditions and applicable regulatory approvals as well as Meritor shareholder approval. It is expected to close by the end of the calendar year.

Meritor’s market repute will empower Cummins to be a provider of integrated powertrain solutions across combustion and electric power applications. By aiding Meritor’s investment in electrification and integrating development within the New Power business, Cummins seeks to offer market-leading solutions. The acquisition is expected to immediately add to Cummins’ adjusted earnings per share and generate annual pre-tax run-rate synergies of $130 million in the third year after closing.

2. Tenneco stated that it is soon to be acquired by Apollo Funds, an affiliate of Apollo Global, in a transaction having an estimated valuation of $7.1 billion, including debts. The partnership will better serve Original Equipment Market or OEM and aftermarket blue-chip customers globally, in addition to maximizing value for shareholders. The transaction is expected to close in second-half 2022, subject to customary closing conditions, including approval by Tenneco shareholders and receipt of regulatory approvals.

Meanwhile, TEN also announced fourth-quarter 2021 results. It incurred an adjusted loss of 11 cents per share for fourth-quarter 2021 against the Zacks Consensus Estimate of earnings of 16 cents. The bottom line slipped 107% from the year-ago earnings of $1.68 a share. Revenues of $4,389 million topped the Zacks Consensus Estimate of $4,186.2 million but declined around 5.6% year over year.