Germany’s ZF Friedrichshafen AG launched an offer to buy U.S.-based TRW Automotive Holdings Corp.
According to Bloomberg News, which first reported on the bid last week, the proposal comes as major automakers race to introduce autonomous driving features in more vehicles and improve the safety of cars and trucks.
The proposed bid, disclosed on July 10, would create a $40 billion automotive supplier. Specific terms and timing of the deal were not disclosed.
In a statement, TRW said it is considering the offer and weighing other options, though it wasn’t specific on alternatives.
ZF is known for making automobile components including steering systems and transmissions. It is 94% owned by the Zeppelin Foundation.
TRW produces auto safety components for global automakers. Investors see TRW as among the healthier of the U.S. suppliers due in part to its focus on driver-assistance technology, according to the Wall Street Journal.